Government Prepares FY 2083/84 Budget Amidst Industry Demands

Butwal. The federal government led by Balendra Shah is currently busy preparing the budget for the fiscal year 2083/84 to be presented on Jestha 15. The government has already presented its policy and program and has intensified budget preparation. While Finance Minister Swarnim Wagle is busy with budget preparation, industrialists, businessmen, and representatives of various organizations from Lumbini Province have stated that the upcoming budget should include programs to encourage production-oriented industries, a private sector-friendly environment, facilitation in the tax system, assurance of investment security, and programs that generate enthusiasm among industrialists and businessmen. They have urged the government to present a budget that stimulates the economy, provides relief to small and medium-sized industries, controls bank interest rates, and prioritizes job creation. They believe a budget that instills hope and creates an investment-friendly environment is necessary at a time when the private sector is disheartened. Thakur Shrestha, President of the Federation of Industry and Commerce, Lumbini Province, stated that the upcoming budget should provide hope and enthusiasm to the private sector, not fear. He emphasized the need for policies and programs that generate enthusiasm among industrialists, noting that the arrest of some industrialists during investigations creates a negative perception of industrialists and businessmen in general. Shrestha also stressed the government's need to be serious about bringing the Gautam Buddha International Airport into full operation. He believes that regular international and cargo flights would positively impact overall economic activities. He further stated that an environment should be created for industries in the Bhairahawa Special Economic Zone (SEZ) to operate at full capacity, and budget allocation should be made for the operationalization of the long-discussed Motipur Industrial Area. He clarified that the concerns of industrialists should be addressed through the budget, especially after the court's decision to remove industries in the Lumbini corridor put the future of billions in investment in uncertainty. Shrestha demanded concessions on customs duties for importing raw materials, citing high rates. He also highlighted the need for special incentives for exports and promotion of products manufactured using domestic raw materials. He added that the budget should play a significant role in bringing integrated tourism programs that encompass the tourist areas of Lumbini Province. Tank Pokharel, Lumbini Province President of the Nepal Chamber of Commerce, suggested that the budget should connect Nepali industrialists and businessmen with the global economy. Speaking to Ratopati, Pokharel stated that while the government's annual policy and program are promising, industrialists still lack confidence, and the government needs to build that trust. He believes the budget should be business-friendly, facilitate the operation of sick industries, and create an environment for starting new industries. He mentioned that industrialists should be provided relief through taxes and other means to increase domestic production. He emphasized that the budget should focus on the operation of the Gautam Buddha International Airport and the full operation of SEZ industries. Hari Prasad Aryal, President of the Butwal Chamber of Commerce and Industry, stated that the government, with a two-thirds majority, should present a budget that boosts the morale of industrialists and businessmen. He believes the budget should address issues like stricter border controls and relief for domestic product exports. He also noted that areas currently in business but not yet in the tax net should be brought under revenue. Aryal suggested that special exemptions should be provided in the budget for industries using domestic raw materials, especially agricultural products. He advised creating an environment for new young entrepreneurs to invest by providing loans at concessional rates, facilitating the investment of capital currently deposited in banks. He also mentioned that programs should be introduced through the budget to operate sick industries like the Butwal Textile Factory and others. He believes the budget should include policies that encourage industrialists and allow consumers to benefit. Tara Rokaya, Lumbini Province President of the Federation of Nepali Chamber of Commerce and Industry, demanded that the federal government present a budget that encourages small and medium-sized industries. She emphasized creating an environment conducive to investment for small industrialists and proposed packages to attract the younger generation to industry and trade, thereby curbing the trend of going abroad. Rokaya suggested that the budget should expedite the construction of industrial areas in Motipur, Rupandehi, Naubasta in Banke, and Laxmipur in Dang, as announced by the government in the past. She stated that the construction of the Naubasta Industrial Area could boost trade not only in Lumbini Province but also in Karnali and Sudurpaschim provinces. Ganesh Prasad Adhikari, President of the Federation of Small and Cottage Industries, Lumbini Province, complained that the government did not consult with industrialists, businessmen, and representatives of various organizations before presenting the budget, leaving the private sector uncertain about its nature. Adhikari mentioned that although there is talk of expanding the tax base, no clear information has emerged. He emphasized that the government should provide further concessions on importing raw materials. He noted that the implementation of customs duty on goods exceeding one hundred rupees at border crossings has provided some relief to Nepali industrialists and businessmen. However, he stressed the need for the state to exercise greater vigilance to prevent illegal smuggling, which still occurs through open borders via motorcycles and other means. Adhikari believes the upcoming budget should include programs to support agriculture, tourism, and recycling industries. He suggested that MRP should be strictly enforced on imported goods, while prices for domestic products should be determined based on production and transportation costs. He stated that even though banks have reduced interest rates, the market has not become dynamic, and industrialists and businessmen are still not in a position to take out new loans. Therefore, he urged the government to present a budget that stimulates the market and encourages the private sector.