Kathmandu. KATHMANDU: The Confederation of Banks and Financial Institutions (CBFN) has said that the budget presented by the Government of Nepal for the fiscal year 2083/84 has been welcome. The budget is positive for policy and structural reforms in the direction of economic revival, boosting the morale of the private sector, promoting investment and building a production-oriented economy.
“The budget has created a new foundation of hope and confidence to revitalize the economy and economic activities at a time when the country’s economy and economic activities, weak confidence in the private sector, the ‘wait and see’ attitude of investors, the failure to expand the expected loan from the banking sector and the increasing challenges of bad loans have created a new basis for the revitalization of the economy and economic activities,” the statement said.
The historic announcement of the establishment of a special empowered National Asset Management Company for the efficient management of bad loans and non-banking assets, especially the reforms in the tax system, the concessions provided to the industries and businesses, the promotion of digital economy, the emphasis on the development of the energy sector, the formulation of investment-friendly policies and the creation of environment, and the efficient management of bad loans and non-banking assets in the banking sector are very far-sighted. This is a positive and timely step taken by CibFin.
The budget has prioritized investment, entrepreneurship, innovation and expansion of financial access, acknowledging the private sector as the major partner and driver of economic growth. Increase in the exemption limit on personal income tax, review of tax rate, customs facilitation on industrial raw materials and arrangements for capital mobilization through alternative financial instruments are expected to infuse positive energy in the overall economic activities.
The budget will also lay the foundation for the expansion of domestic and foreign investment, entrepreneurship development, job creation, production growth, revitalization of the private sector as well as to propel the economy towards high economic confidence.
Expressing the sincere expectation that the Government of Nepal would move ahead by focusing cooperation with the private sector along with policy stability for the effective and result-oriented implementation of the people-oriented and development-oriented policies and programs mentioned in the budget, the CBFIN will play the role of an integral partner and to play the role of an integral partner in the task of economic revival, stability and sustainable development of the financial sector, investment expansion, building a strong and self-reliant economy with sustainable and high economic growth and a prosperous nation. It has been committed.
