Private sector welcomes budget; opposition dismisses it as a mere continuation of the past

KATHMANDU, MAY 30: The private sector has welcomed the government's budget for the upcoming fiscal year 20825/26, expressing satisfaction that several of its suggestions have been addressed. In contrast, the main opposition has criticized the budget as a mere continuation of previous trends, lacking in innovation and structural reform.

Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), stated that the budget reflects many of the federation’s key recommendations. “This budget is encouraging for the private sector,” he said. “Our suggestions regarding investment promotion, the export of minerals, and the strengthening of the Investment Board have been incorporated.”

Kamalesh Kumar Agrawal, President of the Nepal Chamber of Commerce, noted that the budget paper incorporates several proposals from the business community. “Given the current economic context, the allocation of resources and the revenue targets appear realistic,” he remarked.

Tank Prasad Pokharel, President of the Nepal Chamber of Commerce, Lumbini Province, acknowledged the ongoing economic pressures but appreciated the government's responsiveness to private sector input. “The budget seems to aim at revitalizing private sector confidence and encourages entrepreneurship,” he said.

Deepak Malhotra, Senior Vice President of the Chamber, welcomed the government's decision to allow foreign investment by Nepali citizens. “This is a long-standing demand of the private sector, and its inclusion marks a significant step forward,” he said.

KATHMANDU, MAY 30: Former Chamber President Rajendra Malla noted that while revenue collection will remain a challenge, the government’s attention to the IT sector is a positive sign. “Despite the challenges, the overall direction of the budget is commendable,” he added.

On the other hand, Janardan Sharma, Deputy General Secretary of the main opposition party CPN (Maoist Centre) and former Finance Minister, criticised the budget as lacking transformative vision. “It is merely a continuation of past practices, with no fundamental shift in direction,” he said. “Although it addresses some private sector concerns, the broader issues of public revenue and expenditure remain unresolved.”

Sharma emphasized the need to restructure the national economy toward a production-based model. “The budget fails to address the foundational shift needed to move away from a reliance on customs duties and remittances. Without establishing a strong production base, sustainable development is not possible,” he asserted. He also criticized the budget for not adequately addressing issues related to health, education, and employment.

In contrast, Santosh Chalise, Chairperson of the Finance Committee of the House of Representatives, praised the budget for its structure and priorities. “The budget rightly emphasizes agriculture, tourism, and energy, and is youth-focused,” he said. “It also outlines clear timelines for critical issues such as healthcare, fertilizer supply, and tunnel-based transport. Overall, it is a strong and forward-looking budget.”