KATHMANDU, May 30: The private sector has cautiously welcomed the government’s budget for the fiscal year 2025/26, acknowledging its efforts to address current economic challenges while raising concerns about effective implementation.
Chandra Prasad Dhakal, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said the budget has attempted to incorporate demands raised by the private sector. “Along with conventional sectors such as agriculture, tourism, and manufacturing, the budget has also included emerging areas where Nepal has a comparative advantage, such as information technology, alternative energy, and finance,” he said.
Dhakal lauded the budget's provisions on concessional facilities in special economic zones to boost exports, exemptions for women entrepreneurs registering businesses, continuous and subsidized electricity supply to promote IT-related industries, and the categorization of hotels and resorts as special industries. However, he added, “Implementation remains a major challenge. It is also necessary to reduce personal income tax rates and increase the exemption threshold to enhance the purchasing power of the public.”
FNCCI cautiously welcomes budget 2023/24
Kamlesh Agrawal, president of the Nepal Chamber of Commerce (NCC), described the budget as “balanced” but emphasized that its success depends on proper implementation and bureaucratic intent. “The private sector can only benefit if the policies are executed effectively. The government must also address the economic slowdown and rising public liabilities,” he said.
Agrawal further underlined the need to increase capital expenditure to improve liquidity and stimulate the economy. “Although the targets for internal debt and grants are ambitious, the government must remain cautious. Excessive internal borrowing could directly affect market liquidity,” he warned.
Deepak Malhotra, senior vice-president of the NCC, echoed similar sentiments, saying the budget has broadly addressed the issues raised by the private sector.
Karan Chaudhary, president of the NADA Automobiles Association of Nepal, also viewed the budget positively, especially for its attention to the concerns of emerging entrepreneurs. “However, the government must show seriousness in advancing electrification, digitalization, and banking reforms,” he noted.
