Budget gave short shrift to pvt sector, says FNCCI

Kathmandu, September 22:

Although the budget for 2008-09 includes several of the points forwarded by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) it is still not satisfied and wants improvement in it.

“We’re concerned about the economic development of the country,” said Suraj Vaidhya, FNCCI acting president in a press meet here today. He added that the budget had not shown concern for the private sector.

“The present budget can be taken for the immediate economic development of country but private sector is being discouraged,” said Bhaskar Raj Rajkarnikar, vice-president of FNCCI.

FNCCI office-bearers said the ambitious budget, which has been allotted for the eradication of food crisis in the country’s rural parts, would be worthy if only it is implemented. In a transitional economy, the government has given top priority to cooperatives, agriculture and other related sectors such as powder milk production and construction of seeds storage godowns, but private sector didn’t get much scope.

FNCCI feels that though the budget has tried to comprise a liberal economy it seems based on a controlled economy due to which it has failed to provide a friendlier environment to the private sector. It included Public Private Partnership but did not promote the private sector.

According to FNCCI, relaxation in tax margin has been granted but there is no decision for rewarding the highest tax-payer or environment to pay tax.

Today’s need is attracting foreign currency and creating greater employment opportunities. FNCCI complained the budget has no commitment for increase of investment in the private sector.