Tuesday, October 30, 2012

Private sector seeks full-fledged budget


The private sector has asked the political parties to forge consensus and bring a full-fledged budget as soon as possible.
"A full-fledged budget has to come as a consensus economic policy document," said Federation of Nepalese Chambers of Commerce and Industry (FNCCI) president Suraj Vaidya.
Anywhere in the world, the government is the largest producer, consumer and investor, and the budget is a lifeline of the economy, he said, adding that the umbrella organisation of the domestic private sector has since long been lobbying for a fixed date — in the Constitution — for the budget, irrespective of which party is in the government.
"There is no option to political consensus, but the current fluid political situation has hurt the economy hard due to the lack of a full-fledged budget," he added.
The prolonged political uncertainty has made doing business unpredictable, leading the country towards a failed nation, said Vaidya, urging the political parties to save the country from being a failed state.
"Let politics take its own course, but the lack of a budget has been hindering the economic growth of the country," he added.
Private sector representatives also met caretaker prime minister Dr Baburam Bhattarai to request him for an early settlement to the political uncertainty.
However, the two major opposition parties — Nepali Congress and CPN-UML — have been opposing the caretaker government's bid to bring a full-fledged budget without political consensus.
Economists have also been divided on the fate of a full fledged budget. Some claim it is unconstitutional, while others want a package deal along with political consensus, leaving a few who support a full-fledged budget 'but with pre-conditions' from the President.
The caretaker government, led by UCPN-Maoist ideologue Bhattarai, had brought a special budget of Rs 161.25 billion — as an interim public expenditure arrangement for four months — in mid-July through an ordinance due to the absence of a parliament.
Frequent changes in the government due to the political deadlock since the election of the Constituent Assembly some four years back, has forced successive governments to bring special budgets.

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