Nepal | July 15, 2020

COVID-19 battered industry wishes for tax and interest payment waivers, sops in Nepal’s Budget

Economic Survey suggests Khatiwada has little wiggle room

Sujan Dhungana
Share Now:

KATHMANDU: Finance Minister Yuba Raj Khatiwada is scheduled to present Nepal’s annual budge for fiscal 2020-21 at 4 pm on Thursday.

The Economic Survey presented by the finance minister in the federal parliament on Wednesday paints a very grim picture of the economy. The COVID-19 crisis has pulled down Nepal’s macro economic indicators drastically.

GDP growth for the current fiscal is poised to dip to 2.3%. The government had estimated the economy would grow at 8.5%.

The crisis has hit the economy hard, with all major industries in a tailspin with job losses and payment defaults.

We spoke with a cross section of Industry to understand what they expected from Khatiwada’s budget.

Bhawani Rana, president, Federation of Nepalese Chambers of Commerce and Industry says the Budget should focus on protecting citizens from the Corona virus pandemic and reviving industry from the “COVID-19 shock.”

Shreejana Rana, president, Hotel Association of Nepal says tax concessions and Tourism Development Fund are urgently needed for the bleeding hospitality industry.

Umesh Prasad Singh, acting president of Federation of Nepal Cottage and Small Industries counts subsidised electricity and rent as a major expectations from the budget.

Madan Lamsal, General Secretary of Media Society says the budget must announce subsidised loans and ensure sustainability of media houses and the staff they employ.

Film Director Dipendra Lama wants a special package of Financial sops for the film industry and more funding through the Film Development Board.

Given the state of the country’s finances, most industry insiders concede they are not very optimistic about the budget granting them their wish list. Most are looking at a challenging fiscal year ahead.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Manchester United, Marcus Rashford, Premier League

United stay fifth after Saints grab last-gasp leveller

MANCHESTER: Manchester United's Champions League qualification hopes suffered a blow after an equaliser deep in stoppage time from Michael Obafemi earned Southampton a 2-2 draw in the Premier League at Old Trafford on Monday. United, unbeaten in 18 games in all competitions, were poised to m Read More...

Capital budget spending at two-decade low of 40 per cent

KATHMANDU, JULY 13 With just two days remaining for the 2019-20 fiscal year to end, capital budget expenditure throughout the year stands at one of the worst ever at 39.62 per cent. Officials at the Ministry of Finance said capital expenditure during the current fiscal year, which was primaril Read More...

Mayur company resumes bus service in Kathmandu

Kathmandu, July 13 Mayur Yatayat Company resumed its bus services from today in Kathmandu valley amid the COVID-19 pandemic. The decision of Mayur Yatayat has come as a relief to commuters at a time when other public transportation entrepreneurs were refusing to operate their services citing f Read More...

‘Press freedom should involve accountability’

Kathmandu, July 13 Minister of Communications and Information Technology Dr Yubaraj Khatiwada said the CIT Ministry ought to start digitisation first, by utilising the advancement of information technology. As the government has adopted a digital framework, we should become paperless in our activ Read More...

Absconding murder suspect held after 13 years

Kathmandu, July 13 Police have nabbed one of the two prime murder suspects of the much-hyped Sitapaila murder case that had happened 13 years ago. Two workers at a saw mill had allegedly killed its owner, his wife and inflicted serious injuries to their 15-year-old son on the night of 2 Januar Read More...

US debates school reopening, WHO warns 'no return to normal'

MIAMI: The resurgence of the coronavirus in the United States ignited fierce debate Monday about whether to reopen schools, as global health officials warned that the pandemic will intensify unless more countries adopt comprehensive plans to combat it. “If the basics aren’t followed, there is Read More...

landslide

COVID-19 control, disaster management top priorities

Kathmandu, July 13 Tokha Municipality in Kathmandu has set priorities for containment of COVID-19 crisis and disaster management in the budget for the upcoming fiscal year. The municipality that is located in the northern belt of Kathmandu unveiled a budget for Rs 1.58 billion for the fiscal y Read More...

US budget deficit hits all-time high of $864 billion in June

WASHINGTON: The federal government incurred the biggest monthly budget deficit in history in June as spending on programs to combat the coronavirus recession exploded while millions of job losses cut into tax revenues. The Treasury Department reported Monday that the deficit hit $864 billion last Read More...