Economic growth target of 6% challenging: NCC

KATHMANDU: Nepal Chamber of Commerce (NCC) has said the implementation of the budget for the next fiscal year 2023/24 unveiled by the government is challenging. The task of ensuring resources for the budget of Rs 1.75 trillion for the next FY is challenging, NCC stated looking at the current revenue collection target. The private sector's organisation said that the target of collecting Rs 1.24 trillion for the next FY is challenging while the goal of economic growth of 6% is also very ambitious. In a statement released on Tuesday, NCC said, "In the context of the overall economic growth of only 2.16% in the current FY, the target of 6% economic growth for next FY seems to be very ambitious." Reminding about a budget of Rs 1.79 trillion for the current FY, NCC mentioned that the budget was not based on reality, and was reduced to Rs 1.54 trillion through revision. The private sector's organisation has asserted that it will be difficult to achieve economic growth of 6% in the coming year due to lack of structural reforms and resources to spend the large-sized budget. The NCC has also stated that the budget for FY 2023/24 has not been able to address the economy in a relaxed manner. "In the current situation, the target of raising Rs 240 billion domestic debt is likely to cause a liquidity crisis in the financial market." NCC has welcomed the announcement of a cut back on the government's unnecessary spending in the budget.  The system of sending imported goods to the market only after putting labels of importer and market distributor on the packaging will discourage illegal trade at the border. Similarly, NCC has commented that feasibility study on cannabis farming for medicinal purposes is positive as the budget has prioritised the agricultural sector. The chamber has further welcomed the arrangement to conduct real estate business through brokers licensed by local bodies. The system of registration and cancellation of a company online with a fee of Rs 100, and not charging any fee to increase capital is positive. The government's announcement of tourism decade from 2023 to 2033 and the investment summit next year are expected to create an investment-friendly environment, the statement issued by NCC read. READ ALSO:

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