KATHMANDU, AUGUST 14
The Confederation of Nepalese Industries (CNI) has expressed concerns over the sluggish implementation of the government's budget for the fiscal year 2022-23.
According to a report jointly prepared by CNI and the Society of Economic Journalists Nepal (SEJON), the government was able to utilise only 79.7 per cent, equivalent to Rs 1.4 trillion, of the targeted expenditure of Rs 1.7 trillion of the previous year's budget.
The report also highlights a lacklustre status of capital expenditure designated for development. Despite an allocation of Rs 380 billion, only 61.45 per cent, or Rs 234 billion, was actually spent.
The disappointing budget implementation is particularly evident in ministries pertaining to development. The report reveals that out of the total of 62 economic sector points outlined in the previous year's budget, only 18 percent have been fully implemented. Partial implementation stands at 47 per cent, while 35 per cent of points remain unimplemented.
While changes in tax rates and exemptions linked to the Economic Act were swiftly enacted, the progress of implementing budget points related to policy, legal reforms, and structural changes is deemed unsatisfactory.
The report notes that essential initiatives for transformative reforms have not been realised, resulting in a lack of progress in areas such as infrastructure, tourism, industry, and land. Notably, programmes like the start-up promotion initiative, job growth scheme, digital public service delivery, infrastructure construction, export promotion, entrepreneurship development, and private sector enhancement have fallen short of anticipated outcomes.
On the bright side, several points related to foreign investment have been successfully implemented.
A version of this article appears in the print on August 15, 2023, of The Himalayan Times.
