Finance minister of Nepal, Dr. Yubaraj Khatiwa is going to announce the proposed budget for fiscal year 2076/2077 BS. What should be incorporated in this forthcoming budget ? Here are some suggestion from the Senior Vice President of The Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Shekhar Golchha. The following content is edited excerpt of the interview by aarthiknews.com :
It is accused that the previous budgets couldn’t address the aspirations of business community. What do you say, can we except positive this time?
We repeatedly saying that budget should be inspirable for private sector so that they can invest on productive areas. The main problem of Nepal is trade deficit. So, the only one tool to balance trade is huge investment on productive sector.
Can you please, present a list of the subjects that have to be included in coming budget?
First of all we have to reform our judiciary system. The structural and infrastructural level of reform is inevitable on revenue judiciary. We can assume if the office can work properly or not just by observing from outside. The matter of access to the office is another huge problem. We can expect foreign direct investment only after reformation of this office.
Secondly, the interest rate is a main problem. The tendency of up and down in interest rate is unusual here. We can’t get such practice any corner of the globe. Yes, it is fact that we have adopted the open market policy. But, again we can’t forget that we have monitoring authority i.e. central bank.
Thirdly, the issue of laws and acts is in our concern. In our nation we get that the industrial act always overruled by financial act. We want to use the industrial management act as our guideline law. We believe that it should be strong and practical.
Fourth is our infrastructure. The infrastructures of our country are so weak and fragile that neither roads nor the customs is in properly functioning. Though it is the condition but ironically government can’t spend its development budget.
Is there any other issue that should hit to the government in psychological level ?
Why not? Yes, there is. Drastic change is needed in project bidding process. The authority doesn’t focus on creditability but only on price that quoted by the bidder. We have to go through the history of the company. If the government’s authority observes the capacity of the bidder then the problem of holding the project will be minimized. There is not any other way of reducing the cost of doing business.
Business community says that there are challenges to start a new industry. What are they?
The primary problem is acquisition of land. We are asking for the forest area in leases. We need the access of electricity and road network. In some of the case we need subsidiary on custom tariff.
You mean, you people want subsidiary on exportable productions?
Yes, we need a competitive environment while thinking about international market. The main trade of our country is with India. So, we demand with the government for the business on local currency, I mean on Indian Currency.
But, it is heard that the financial minister doesn’t listen to business community?
It is not good to reply directly for this question but again I believe that he will take our suggestion seriously. We can sense the compulsion that he is facing. But, I am sure that he will take our suggestion on consideration.