The federal budget for fiscal 2020-21 is positive and realistic taking into account the massive setback that the country has faced due to the COVID-19. I personally think that the budget has addressed the major things that need to be done next year. However, there are some lapses in the budget and it is not possible to address each and every aspect of the economy. The major positive point is that it has addressed the hard-hit sector like tourism, focused on infrastructure and agriculture sector where most of the employment is generated. Likewise, making payment gateway, making digital Nepal as soon as possible, avoiding cash and making a cashless economy, among others, are some other positive aspects of the budget.

This is a historically bad budget for private sector hydropower developers.

The government has said that it will scrap the licence of any developer who is unable to start their respective project. We didn’t expect such an announcement during a difficult time like this. I feel that the budget has not addressed the challenges faced by the domestic power producers. No substantial facility has been offered to domestic hydropower developers. The government has said it will add another 1,300 megawatts of electricity in the upcoming fiscal year but it has failed to address the sustainability needs of the existing projects and we have raised this concern since long. Similarly, the budget has not talked about under-construction projects with total capacity of 3,000 MW whose construction completion date will be delayed due to the impact of the coronavirus contagion and subsequent lockdown.

A version of this article appears in e-paper on May 29, 2020, of The Himalayan Times.