KATHMANDU: Confederation of Nepalese Industries (CNI) held a programme to discuss the ‘Budget Watch’ which conducted a thorough assessment of the economic sector and discovered significant gaps between the intended budgetary allocations and the actual implementation. The 'Budget Watch' revealed findings from its analysis of the budget implementation for the fiscal year 2022/23.
In the review programme recently held in Kathmandu, it was revealed that most of the programmes announced by the government through the annual budget were limited to paper.
CNI Vice President Hem Raj Dhakal informed that out of 62 points related to the private sector and economy, zero progress has been seen in 22 points (35%) in the budget. He said that only 11 points (18%) have been fully implemented. The study shows that 29 points (47%) have only been partially implemented.
Moreover, the participants in the review programme admitted that foreign investment has not been brought into the country as expected.
Addressing the programme, CNI President Rajesh Kumar Agrawal said although there are good programmes in the budget, the implementation aspect is weak. The capital expenditure is weak as the budget implementation is weak, he said and added that investment should be increased for the economic transformation of the country.
He asserted that foreign investment is necessary as over Rs 2.02 trillion required annually for long-term development goals cannot be maintained by internal capacity. He stressed that eight points related to investment promotion in the budget for the current fiscal year should be implemented. He opined that the impact of the current recession, decline in overall market demand, and declining morale of the private sector can be improved by effective implementation of the policies and programmes announced in the budget.
On the occasion, Ministry of Industry, Commerce and Supplies (MoICS) Under Secretary Govinda Karki informed that in the first four months of the current fiscal year, work has been done in the system reform and improving legal sector. He mentioned that legal work is being done to facilitate visas for foreign investors investing in Nepal and highlighted that the government has prioritised the facilitation of foreign investment.
Securities Board of Nepal (SEBON) Chairman Ramesh Kumar Hamal said that foreign investment could not be attracted in Nepal due to the cumbersome legal procedures. Hamal said that he has taken the initiative to make a way for non-resident Nepalis to invest in the stock market of Nepal.
Nepal Rastra Bank (NRB) Deputy Governor Neelam Dhungana Timsina stressed the need for everyone's coordinating role in the implementation of the points mentioned in the budget. She said the central bank is also working to resolve the problems related to attracting foreign investment.
Former Finance Secretary Sishir Kumar Dhungana suggested keeping investment-related portals updated. He suggested the government pay attention to the fact that foreign investors get a lot of information from these portals. He also pointed out the need for contemporary reforms in the laws.
Meanwhile, CNI is watching the budget for current fiscal year 2023/24 for the implementation of a total of 73 items that include the priority points related to the private sector and the economy. According to CNI, the items have been classified into six areas. The Budget Watch includes energy (hydropower), tourism and hospitality, information technology, infrastructure, education and health, agriculture, medicinal and aromatic plants, and mining and minerals sectors.
