Nepal | July 05, 2020

‘Focus on infra development’

Pvt sector asks government to prioritise infrastructure in budget

Himalayan News Service
Share Now:

Kathmandu, May 23

With just a week left for the government to introduce the budget for next fiscal year, the private sector of the country has urged the government to place infrastructure development under higher priority in the upcoming fiscal budget.

Informing that infrastructure deficit in Nepal is the major setback to economic growth of the country, different private sector representative bodies have urged the government to bring infrastructure sector friendly budget for fiscal year 2017-18.

As per the constitutional provision, the Ministry of Finance (MoF) is preparing to bring the budget for fiscal 2017-18 on May 29. However, MoF has already said that it would bring a full-fledged budget without incorporating new programmes as incorporating new programmes in the budget would breach the election code of conduct. The second round of the local level elections are slated for June 14.

“The infrastructure of Nepal is one of the poorest in Asia and has become a huge setback to overall development of the country. As infrastructure development is the base for development of other sectors, the new budget should prioritise infrastructural development,” Bhawani Rana, president of the Federation of Nepalese Chambers of Commerce and Industry, said.

Though the government is not introducing new programmes in the budget this year, Rana opined that the government should allocate sufficient funds in the new budget for different ongoing infrastructure projects that are facing budget deficit.

Similarly, Rana also said that the government should ensure effective implementation of one-window system, reduce taxes on raw materials and promote manufacturing industry through the new budget. “The contribution of the manufacturing sector in the gross domestic product (GDP) has been falling in recent years as many investors are shifting towards trading sector due to the business hassles in production sector,” she said.

Hari Bhakta Sharma, president of the Confederation of Nepalese Industries, said that the annual budget in Nepal had been allocating low funds for infrastructure development in the past years, which has resulted in high infrastructure deficit in the country.

“As per the practice in developed nations, the government should allocate at least 10 per cent of the GDP for infrastructural development every year and this trend has to be continued for several years,” he said. Similarly, Sharma also said that government should increase its execution capacity as many projects related to roads and bridges have been pending for long.

Sharma also urged the government to introduce a provision in the budget to provide necessary land to industrialists to set up new industries. “The high cost of acquiring land has increased production cost of industries and many investors are discouraged to make investments,” he added.


A version of this article appears in print on May 24, 2017 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Nepal's Covid-19 recovery rate sees improvement in the last 7 days

KATHMANDU: Nepal has witnessed a relatively significant rise in the number of COVID-19 recovery cases in the last seven days, compared to the past weeks, adding a glimmer of hope as the nation as a whole grapples with the rapidly rising number of positive cases. In the last week alone, as many as Read More...

Locusts devour crops on 1,100 hectares

KATHMANDU, JULY 3 Desert locusts have damaged crops cultivated on 1,100 hectares of land across the country. According to the Locusts Information Centre, eight districts have reported damage caused by locusts till date. Of them, Dang is the worst hit and Palpa the least. The locusts devoure Read More...

World Bank elevates Nepal to ‘lower middle income economy’

Country saw its GNI per capita rise to $1,090 in 2019, but economists says it doesn’t mean much in terms of development KATHMANDU, JULY 3 Nepal is now officially a lower-middle income country, an upgrade from its previous status as low income nation, according to the World Bank’s latest coun Read More...

Oli, Dahal in bid to save NCP unity

If the two co-chairs fail to act as per the spirit of the party unity document, maintaining party unity will be difficult  - NCP leader Mani Thapa KATHMANDU, JULY 3 Co-chairs of the ruling Nepal Communist Party (NCP) — Pushpa Kamal Dahal and Prime Minister KP Sharma Oli — held talks for thr Read More...

Kailali's Bhajani Municipality, Joshipur Rural Municipality inundated

KAILALI, JULY 3 Bhajani and Joshipur of Kailali have been inundated after floodwaters gushed into the settlements. According to eyewitnesses, many houses in Wards 2, 3, 6 and 8 of Bhajani Municipality have been inundated. Local Ganga Chaudhary said floodwaters from local Kandra and Kadha ri Read More...

Ministry develops guidelines for rehab centres

KATHMANDU, JULY 3 The Ministry of Women, Children and Senior Citizens has developed guidelines for operation of rehabilitation centres to ensure that vulnerable persons at the centres do not contract COVID-19. MoWCSC said the new guidelines would be effective until Nepal was declared coronavir Read More...

Nepali Congress Ram Chandra Paudel

Country pushed into crisis: Paudel

DAMAULI, JULY 3 Senior Nepali Congress leader Ramchandra Paudel said sudden prorogation of the Parliament was unfortunate for the nation. “At a time when the nation is fighting a deadly disease, the decision to prorogue the Parliament has pushed the country further into the crisis,” said t Read More...

Holding centre in Khotang

KHOTANG, JULY 3 A 10-bed holding centre has been established in Diktel, the district headquarters of Khotang, for returnees. According to Chief District Officer and District COVID-19 Crisis Management Centre coordinator Shaligram Sharma Poudel, Nepali Army personnel and Red Cross staff jointly Read More...