The Post asked members of the business community what they thought about the budget. Here’s what they had to say.

Rajesh Kaji Shrestha

Chairperson of Nepal Chamber of Commerce

The allocation of budget in various sectors including health, social, energy and others is adequate and positive. Cutback in Capital Gains Tax is a praiseworthy move as it will encourage investments and foster growth. This time, the budget has not been prepared in haste and the necessary by-laws required for full implementation of the budget must be brought into effect soon. However, a hike in government staffer’s remuneration can create an upward inflationary pressure. Overall, the budget is positive and will help industrial growth.

Ram Prasad Gyawali

Former Head, Central Department of Economics, TU

The budget size is large and it accounts for nearly 44 percent of the country’s Gross Domestic Product. The government has tried to serve every interest group through this populist budget and that will do injustice to the economy. The trade deficit will swell and the country will witness a rise in prices. A largely expansionary budget will hike up the capital expenditure and that will put upward pressure on general prices, also with a larger budget, the trade deficit will also increase.

Kumar Pandey

Vice-president, Independent Power Producers Association, Nepal

Although we have no monetary interests that government must address in the budget, the plans of increasing investments in national and cross border transmission lines will bring all power producers good profits. The government should now address the liquidity issues through favorable monetary policy such that the power producers do not have to bear high interest on bank loans. The decision to invest in energy infrastructure is positive but this budget lacks policies related to expansion of electricity market. No plans that will help increase consumption of electricity are mentioned in this fiscal’s budget.

Pashupati Murarka

Former Chairperson of FNCCI

The budget is satisfactory as it has addressed mainly the issues related to tax and growth of manufacturing sectors. It has reduced the deposit amount to be submitted by the taxpayers while facing legal action. In addition, revision in slabs on income tax and reduction in capital gain tax for stocks investors are some of its positive moves. Likewise, the budget tries to relieve domestic manufacturers. Reduction in customs duty on import of raw materials, the expansion of bonded warehouse facility for exporters and commitment to enforce countervailing duty to safeguard domestic products could help promote the domestic industry.