Coordination between budget and monetary policy essential to achieve results: FNCCI President Dhakal

KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal stated that coordination between the budget and monetary policy is essential to achieve results from the budget for upcoming fiscal year.

Dhakal expressed this view while speaking at a post-budget discussion programme organised by Nepal Association of Financial Journalists (NAFIJ) in Kathmandu on Saturday.

The government announced a budget of Rs 1,964.11 billion for upcoming fiscal year 2025/26 on May 29.

FNCCI President Dhakal opined that while many suggestions from the private sector were included in the budget, some issues were still missing. "The budget is comparatively good. Private sector has been considered the main driving force of the economy. We have taken this positively. However, some issues prioritised by private sector have been left out. I urge the Finance Minister to review the omitted matters as much as possible," President Dhakal said.

He urged the government to focus on the proper implementation of budget and stated that the private sector is always with the government in its good decisions.

FNCCI President Dhakal mentioned that while prioritising mineral and river-based resource extraction and the tourism sector is positive, simplification is needed regarding TDS and tax, as they increase tourist costs.

President Dhakal stated that the concessions given to agricultural tourism, industry, information technology, alternative energy and special economic zones, as well as the provision of facilities for exporting 30% from industrial areas, will have a positive impact on the productive sector.

He emphasised that empowering the Investment Board Nepal for foreign investment facilitation is good, but integrated laws, a one-door agency and an effective mechanism are necessary for investment facilitation.

He also stated that 6% economic growth for the upcoming fiscal year mentioned in the budget is possible if policies and programmes are implemented correctly. FNCCI President Dhakal stressed that good governance should be the first priority in the implementation of all these matters.

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