SANGAM

Biz sector slams special budget

SANGAM PRASAIN
KATHMANDU, JUL 12 -
Economists and business leaders on Monday said that the ‘special budget’ presented on Monday will not address problems the economy is currently facing. They also regretted the fact that the budget, once again, became a prey to political uncertainties.

 Economists and business leaders said the ‘special budget’ will affect the investment and employment opportunities in the next fiscal year. It will also hit the government target of reducing poverty, they added.

Until the Appropriation Bill for the next fiscal year is presented in the legislature parliament, the government has to manage expenditure and income through the ‘special budget.’

When will the full-fledged budget come? It all depends on how quickly major political parties resolve the deadlock over the formation of a new government. Former Finance Minister Prakash Chandra Lohani told the Post that the compulsion to bring in the ‘special budget’ shows the major political parties are not serious about the economy. 

“Constitution making has been delayed, corruption has increased and now the government fails to present a full-fledged budget. It indicates we’re gradually moving towards a failed state,” Lohani said.

Economist Biswombhar Pyakurel said a recent study of South Asian countries shows Nepal as an example where low political will and instability has marred the economic growth. “If the government fails to expedite development expenditure, economic activities will slow down affecting the poor,” said Pyakurel.

The private sector that was looking for incentives in the export sector through a full-fledged budget is also disappointed with the government presenting the ‘special budget.’ The special budget has failed to address the problems the economy is currently facing. The private sector that contributes 70 percent in investment is worried about the situation that forced the presentation of the ‘special budget.’

The heads of two apex bodies of the Nepali private sector, Kush Kumar Joshi and Binod Kumar Chaudhary lamented that political leadership is yet to realise the grave consequences of not coming up with a full-fledged budget.

Joshi, the president of Federation of Nepalese Chambers of Commerce and Industries, bluntly termed the ‘special budget’ as a move to provide salaries to civil servants. “We cannot term it a budget as it has no policies and programmes,” he told the Post.

“Once again, the country’s development process and economy has taken a backseat,” said Chaudhary, the president of Confederation of Nepalese Industries (CNI). “Economic development can’t be accelerated through a special budget.”