ITAHARI: Provincial governments are gearing up to present their budgets for the upcoming fiscal year. While provincial governments have been introducing promising budgets, there is a growing concern among businesspeople regarding their effective implementation.
Chintamani Sapkota, a seasoned entrepreneur involved in business activities in Dharan, Sunsari for over a decade, said the lack of effective implementation is a major obstacle to achieving the desired results from the budget. He urges the government to bring about reforms in banking policies and enhance transparency in their implementation. “Middle-income groups are driving the economy all over the world. But they are being neglected here,” Sapkota said, urging the government to prioritize middle-income people in their policies and programs.
Sapkota further emphasized the need for support to businesspeople, as the liquidity situation remains challenging. “The budget has not been adequately supportive of middle and small enterprises. An increasing number of youths are leaving the country for overseas job opportunities. The state has failed to retain them and harness their potential for economic activities,” he added.
Mohan Dhungel, a trader based in Itahari, stresses the importance of creating a conducive business environment in the province through the upcoming budget. “The state seems to be focused on raising revenue only. It lacks a program to link production with the market,” Dhungel added. He called on the provincial government to encourage industrialists and businesspeople from other parts of the country to put their money in the province. “It is necessary to bring programs like leasing out government land to open industries and encourage farmers to go for group farming, among others,” Dhungel suggested.
The federal government is disbursing Rs 16.11 billion under four headings – equalization grant, conditional grant, special grant, and complementary grant – to the Koshi Province Government.
Highlighting the challenges faced by industrialists and businesspeople, Krishna Prasad Dhakal, a businessman from Sundarharaicha in Morang, criticized the provincial structure for failing to meet the aspirations of the people and instead serving the interests of a select few. Dhakal laments the lengthy process of setting up industry and the burden of various taxes and fees imposed from the very beginning.
Similarly, Mahendra Pradhan, the general secretary of the Sunsari Chamber of Commerce and Industries, emphasizes the need for reduced bank interest rates to provide relief to industrialists and businesspeople. Pradhan also called for the withdrawal of taxes on agricultural products. Pradhan urged the government to lower tax rates and implement private sector-friendly policies. “The interest rate should be in single digits. The government is also levying VAT on agricultural products. Such taxes should be reduced,” he said, urging the government to bring private-sector friendly policies by revising tax rates.
The federal government has brought a budget of Rs 1,751 billion for fiscal year 2023/24. The federal government is disbursing Rs 16.11 billion under four headings – equalization grant, conditional grant, special grant, and complementary grant – to the Koshi Province Government. The provincial governments are required to bring their respective budgets for the upcoming fiscal year on June 16.
