Nepal | July 11, 2020

In their opinion …

Himalayan News Service
Share Now:

Federation of Nepalese Chambers of Commerce and Industry Vice-president Chandra Prasad Dhakal. Photo: Balkrishna Thapa Chhetri/ THT

Finally, the government has brought a realistic and sustainable budget for Nepal as per our economic condition. The private sector had made many demands with the government to bring stimulus packages to address the current difficult situation.

Meanwhile, the government has addressed some of the issues like reducing the taxes in the tourism sector. The private sector is very optimistic about the budget. However, it remains to be seen if the plans in the budget will be implemented effectively. If the government is able to handle the inflow of returnee migrant workers and address the employment issue, then the private sector will help the government in a better way.

Nepal Bankers’ Association President Bhuvan Dahal. Photo: Bal Krishna Thapa/THT

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.

Hotel Association Nepal President Shreejana Rana. Photo: THT

Even during this crucial time, the government has announced a budget that is similar to those announced during normal times. The government has allocated budget for destination development and infrastructure development of the tourism sector but it has not allocated budget to sustain the industry. The budget did not match our expectations.

However, destination development and infrastructure development and domestic tourism promotion are some good announcements. Likewise, loan at five per cent interest rate is also appreciable. The budget overall seems more effective for startup investors than those who are already in the business.

Independent Power Producers’ Association-Nepal President Shailendra Guragain. Photo: THT

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.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Nepal at high risk of yet another locust invasion, five large swarms expected to fly in

KATHMANDU: Nepal could possibly be swarmed by locusts yet again as a large swarm is seen moving northward from Rajasthan of India, warned Plant Quarantine and Pesticide Management Centre. Five swarms of locusts are currently spaced out at 400 hectors of the area around Sikar of Rajasthan of India Read More...

In Pictures: Health workers at the frontline

  A health worker collects throat swabs for Polymerase Chain Reaction (PCR) testing of patients at Teku-based Sukraraj Tropical and Infectious Disease Hospital, in Kathmandu, on Thursday, July 9, 2020. Read More...

Seven killed in landslides at various places in Pokhara

POKHARA: Seven persons were killed in landslides triggered by incessant rain at three places in Pokhara Metropolitan City of Kaski district today. Five persons were killed in Sarangkot, Pokhara-18, and one each at two other places. Landslide debris buried the house belonging to Tanka Bahad Read More...

30 missing as monsoon-disasters strike Myagdi

POKHARA: As many as 29 persons have gone missing as rain-triggered landslides carried them away in various parts of Myagdi district. Among the missing, 12 are from Dhawalagiri Rural Municipality-6, eight from Malika Rural Munciipality-7, seven from Rikha and one each from Thulogaun and Namruk, in Read More...

Kazakhstan denies Chinese reports of pneumonia deadlier than coronavirus

SHANGHAI: Kazakhstan dismissed as incorrect on Friday a warning by China's embassy for its citizens to guard against an outbreak of pneumonia in the central Asian nation that it described as being more lethal than the coronavirus. In a statement late on Thursday on its official WeChat account, Read More...

Tropical Storm Barry

Storm off Mexico likely to be east Pacific's first hurricane

MEXICO CITY: Tropical Storm Cristina formed Thursday off Mexico's western coast and was forecast to grow into the first hurricane of the eastern Pacific season by Friday morning, though it was unlikely to pose any threat to land. The US National Hurricane Center said the storm had near hurricane- Read More...

US bans Pakistan International Airlines flights over pilot concerns

SYDNEY: The US Department of Transportation said it has revoked permission for Pakistan International Airlines (PIA) to conduct charter flights to the United States, citing Federal Aviation Administration (FAA) concerns over Pakistani pilot certifications. The information is contained in a r Read More...

Worldwide coronavirus cases cross 12.33 million, death toll over 554,000

At least 12,337,121 people have been reported to be infected by the novel coronavirus globally and 554,383 have died, a Reuters tally showed. Infections have been reported in more than 210 countries and territories since the first cases were identified in China in December 2019. The World Read More...