The Nepal Chamber of Commerce has said that the Rs 1,647.57 billion budget announced by Finance Minister Bishnu Prasad Poudel for fiscal year 2078/79 on May 29 is private sector friendly but given the present crisis it will be very challenging to implement it.
The chamber has mentioned that the Rs 122.77 billion that has been allocated for the health sector, which also includes for control and prevention of coronavirus and treatment of patients infected with COVID-19 and to purchase vaccines is a positive aspect of the budget. It has urged the government to make available COVID vaccines at the earliest and so as save people’s lives.
The NCC has also said that the Rs 163.37 billion that has been allotted for infrastructure development is also a positive factor of the budget. It has mentioned that for the economy to revive investment in infrastructure development is must. However, the chamber has stated that the current methods of capital expenditure must be changed and infrastructure development must be expedited to revive the economy.
The chamber has further stated that the introduction of the policy to provide a loan of Rs 25 lakh at five per cent interest rate by keeping academic certificates as collateral will definitely encourage the youths towards entrepreneurship. The other positive aspect of the budget is the Rs 25 lakh loan that start-ups and innovation centres will be able to obtain at one per cent interest, it added.
It has also mentioned that the government’s policy to waive the income tax for the first five years from the date a start-up begins operations will also encourage entrepreneurship in the country. Meanwhile, the chamber has said that the government has allocated Rs 180.04 billion for the education sector which is a very good aspect of the budget for next fiscal year. However, it said that implementing the programmes under the education sector will be challenging due to the coronavirus.
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