SANGAM

'A peanut is not a meal’

SANGAM PRASAIN
KATHMANDU, JUL 13 -
The business community and economists have pointed out that delay in presenting a full-fledged budget will hinder the country’s economic growth and private sectors’ investment plans.

At an interaction on ‘Delay in Budget and its Impact in Country’s Economy’, organised jointly by Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Society of Economic Journalists of Nepal (SEJON) on Tuesday, economists said that disturbances in regular budget presentation cycle would ultimately hamstring the overall economy.

At a time when country was looking for a full-fledged budget to address bottlenecks in the economy, the government’s special budget will widen existing trade deficit, constrain revenue mobilisation and hit private sector confidence, said economists. They pointed out that the political leadership had failed to realise the country’s economic agenda and priorities.

“Investors are in a dilemma whether to invest or not as there is no concrete programme and policy of the government in the special budget,” said Kush Kumar Joshi, president of the FNCCI.  Joshi said that trade deficit would further widen in the next fiscal year.

“The private sector has demanded stimulus packages to address the growing trade deficit issue, industrial insecurity and load-shedding, all in vain,” added Joshi. 

Economist Biswombhar Pyakurel described the advance budget as too meagre. He said that the public distribution system had become a joke. “No political parties is serious about the country’s economic agenda,. This will adversely impact the country’s economy in the long run,” he added. This is the second time in three years that a full-fledged budget has been delayed.

Economist Dilli Raj Khanal said that if the political class fails to address the country’s economic agenda, a crisis would erupt. “There is  need for political consensus to address the deepening problem,” said Khanal. Economist Chiranjivi Nepal said that as the country is witnessing a huge balance of payment deficit and decline in foreign currency reserves, delay in full-fledged budget would worsen the economic crisis. “It is unfortunate that no political party is serious about economic issues,” he lamented.

Finance secretary Rameshwor Khanal said that investment would decrease if the economy does not stay stable. “Delay in budget announcement will discourage both domestic and international investors, and without investment we cannot have economic growth,” he said.

He said that the targeted economic growth for the next fiscal could be affected. “The government plan to provide incentives and facilities to production and agriculture sector for import substitution and accomplishing the three-year plans will also be affected,” he said.