Print Edition - 2014-07-16 | MONEY
Budget planless on deficit: CNI
Jul 15, 2014-
The Confederation of Nepalese Industries (CNI) has criticised the government’s budget for not containing a specific plan of action to reduce the ballooning trade deficit. The association said that without a proper programme and policy to boost Nepal’s external trade, the gap between imports and exports could widen further in the future.
The government’s annual financial plan for 2014-15 has stated that the government will enact laws to promote exports. However, the CNI said that export promotion could not be done only by making laws. The umbrella organisation of the country’s medium and large industries demanded that the government come up with a concrete work plan to promote industries that would support import substitution and export promotion.
The CNI is also sceptical about the government’s stated target to maintain inflation at 8 percent during the coming fiscal year. “The government has set a goal to rein in inflation to 8 percent, but the budget has not mentioned any mechanism to control soaring market prices,” said the CNI in a press release.
Meanwhile, the association has praised the government’s announcement to create an investment friendly environment by endorsing the Industrial Enterprise Act, Special Economic Zone Act, Foreign Investment and Technology Transfer Act, Intellectual Property Right Act and Electricity Act. The CNI has also asked the government to formulate plans within three months to implement them effectively.
Similarly, the CNI has lauded the government’s plan to prohibit cartels and syndicates in the transport business, and to provide a 50 percent rebate on value added tax to tea producing factories.
“In addition, the focus on resolving the energy crisis, expansion of special economic zones and development of the road network are positive sides of the budget,” the CNI said.
Published: 16-07-2014 09:26