Kathmandu. KATHMANDU: The Confederation of Banks and Financial Institutions (CBFN) has said that the budget presented by the government for the coming fiscal year 2083/84 has set the direction of economic revival, boosting the morale of the private sector and promoting investment. In a statement on Sunday, Cibfin welcomed the policy and structural reform initiatives unveiled by the budget and said the foundations were laid to revitalize the economy.
The budget has created a new basis for hope and confidence amidst challenges like sluggish economic activities, weak confidence of private sector, ‘wait and see’ attitude among investors, failure to expand expected loan in banking sector and increasing bad loans, the CNI said.
The CBFIN has positively acknowledged the reforms in the tax system, concessions to industry and businesses, promotion of digital economy, priority given to technology and infrastructure development, emphasis on development of energy sector and efforts to create investment-friendly environment.
Likewise, the government’s announcement to establish a national asset management company with special powers to manage the growing bad loans and unbanked assets in the banking sector is a historic, farsighted and timely step. The budget has prioritized investment, entrepreneurship, innovation and expansion of financial access, while acknowledging the private sector as the major partner of economic growth. According to CBFIN, the increase in the limit of personal income tax exemption, review of tax rates, customs facilitation on industrial raw materials and arrangement of capital mobilization through alternative financial instruments will have a positive impact on economic activity.
Likewise, the budget has prepared an important basis for orienting the economy towards high economic self-confidence through expansion of internal and foreign investment, development of entrepreneurship, employment generation and production increase. The CBFIN has urged the government to increase collaboration with the private sector by maintaining policy stability for the effective implementation of the people-oriented and development-oriented programs mentioned in the budget. “We are fully committed to work with the government for economic recovery, stability of the financial sector, investment expansion and sustainable economic growth,” the statement read.
