FNCCI’s mixed reaction to budget

KATHMANDU, APRIL 1: The Federation of Nepalese Chamber of Commerce and Industry (FNCCI) has expressed its satisfaction with addressing some of its key demands/concerns by the recently presented budget for the next fiscal year. Issuing a press communique yesterday, it did so.

The first demand is forming a commission to launch new economic reform programmes and the second one pertains to establishing an investment company by collecting money from small-scale entrepreneurs. According to the FNCCI, the very move could well help in developing big projects needed for bolstering the crippled industrial sector.

The announcements like designating the next 10 years as a decade for agricultural investment, developing Nepal as an international destination for weddings, meetings, conferences, etc, and constructing hill stations near the Indian border to promote tourism relate to the third, fourth and fifth concerns, respectively.

Increasing the Start-up Fund amount and making Nepal an international Information and Technology (IT) hub relates to the sixth and seventh demands of the Federation. Regarding the startup and IT sectors, it has urged the government to come up with long-term plans and programmes.

However, despite all this, the apex body of business fraternities has also criticised the budget on various fronts. “It failed to adopt measures to mitigate the constant decline in the share of the productive sectors to the national Gross Domestic Product (GDP). Similarly,  the budget did not incorporate any plans/programmes to tackle development challenges that would surface after the proposed elevation of Nepal’s status to a developing country.” the release bemoans adding,”Likewise, the government did not come up with special programmes to impel the private sector in economic growth as expected.”

According to the FNCCI, the budget also lack edadequate programmes to enable the private players to absorb the excess liquidity in the financial system.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

of the apex body of Nepali business communities.