Terming the overall budget for the fiscal 2020/21 ‘balanced’, the Nepal Chamber of Commerce said allocation of huge chunk of budget for enhancing proposed health services and widening the health sector coverage as well as infrastructure development in itself was spectacular.
Issuing a press release today, the NCC said the appropriation of budget Rs 90.69 billion for health service and its infrastructure was crucial.
The Chamber had anticipated five percent of the Gross Domestic Production amounting around Rs 200 billion for economic restoration but the budget however has earmarked merely Rs 50 billion.
The Chamber has called for reducing interest to two percent from five percent announced as the package for small and medium-scale enterprises. It has also concluded that the announcement of farmers’ credit card and land bank and non-compulsion to get registered in PAN in case of wage and remuneration expenses up to Rs 3,000 and purchase of goods and service up to Rs 2,000 would incentivize the farmers.
The NCC also termed the budget positive for announcing incentives in promoting internal tourism and subsidy in air fuel and ground handling charge. However, the Chamber has expressed doubt on meeting the target of economic growth.
The revenue collection target is ambitious and challenging, the chamber said, adding the ambitious target in employment generation was unlikely to be leveled up. “It would be tougher to manage around 1.5 returnees from India”.
The budget has not paid attention to make the agro sector competitive though it has focused on agro production. The target of raising domestic loan could create liquidity crunch in the market, the NCC sources said.
The incentive for using electric goods has been given premium in the budget however the imposition of tax on e-vehicles and increment of tax on diesel and petrol are not consistent, the press release noted.
Source: National News Agency Nepal