Zero progress on 57pc of the economic development related titles of the budget- CNI

KATHMANDU: The progress of 57.1 percent points related to economic development, investment and private sector included in the budget of the current financial year is zero. The budget included 63 items related to the private sector and investment-related industries, land, infrastructure, foreign direct investment (FDI), public private partnership, etc., which are considered important for economic development.

Even after the first 7 months of the current fiscal year 2022/23, the progress of 36 points of that program is zero, according to the study of Confederation of Nepal Industries (CNI).

The study has pointed out that there is zero progress in the budget policy and program of arranging land lease arrangements for 50 years for industries, constructing and operating industrial zones in potential areas including Shaktikhor in Chitwan, and reviewing the provisions related to demarcation of land required for establishing industries.

According to a study, only 14.3 percent (9 points) of those identified points have been fully implemented. Only the arrangements that are automatically implemented after the budget or from the first day of the financial year and most of the provisions related to the tax policy have been implemented. 28.6 percent (18 points) have been partially implemented.

Points such as reforming laws and procedures related to foreign investment to bring in investment from non-resident Nepalis, granting permission to Nepali construction professionals to do construction business abroad, and raising the necessary financial resources for infrastructure development by issuing green bonds have not yet been implemented.

“The slow progress seen so far in budget implementation will only push our goals of economic prosperity further away,” the statement said.

In relation to foreign investment, the minimum limit of Rs 20 million has been maintained, approval of investments up to Rs 1 billion through automatic system, reservation of ten percent shares in the primary issue of securities for Nepalis who have gone abroad for employment, and initial approval of large foreign investments through electronic means within seven days have been implemented.

“Not only has the budget not been effectively implemented, it has hit the government’s revenue target, liquidity in the system is uncomfortable, and when there is a big contraction in demand, it has also reduced the morale of the private sector for new investments,” the statement said.

CNI President Vishnu Agrawal said that if the policies introduced by the government are implemented, it will help to grow the overall economy. However, even after seven months of the financial year, policies such as bringing in foreign investment and assisting in foreign exchange reserves have not been implemented, he informed.

He informed that policies and programs in the government budget should be implemented to increase the current deficit in foreign exchange reserves in the country.

“There was a policy that even foreigners can buy apartments in foreign currency, but the procedure has not been made, so that foreign currency has not been brought in,” he said. Policy comes. It does not help economic development.