By Our Reporter
The budget presented by Finance Minister Dr Yuba Raj Khatiwada last week did not draw encouraging reactions from the business community as well as the politicians.
When the main opposition party, NC, said the budget did not favour the private sector, some leaders of the ruling CPN has also criticised the budget stating that the budget would not help achieve the goal of prosperity. CPN leader and former finance Minister Surendra Pande and former home minister Janardan Sharma have also criticised the budget.
The private sector is critical to a few tax provisions and the decision not to return the VAT money to the businessmen. The businessmen have already increased the prices of everyday commodities, including rice while others who have invested in share markets have been staging a sin-in against the provision of capital gain tax on bonus and right shares.
The share market has plummeted following the presentation of the budget.
Similarly, civil servants are not happy for not hiking their pays. The senior citizens are unhappy as they were not given any additional allowance. Although the budget has taken a policy to give protection to the local industries, the businessmen accustomed to earn money though crony capitalism have opposed the progressive provisions of the budget. When the permanent government (civil servants) and the business community are not happy, it will be difficult to implement the budget.
However, Prime Minister K P Sharma Oli and Finance Minister Dr. Yuba Raj Khatiwadahave defended the budget.
Finance Minister Khatiwada argued that the budget of the coming fiscal year 2018/19 was centered on building the national economy.
Responding to queries raised by the lawmakers during the deliberations on the new budget in the House of Representatives on Sunday, Finance Minister Dr. Khatiwada said that the budget was strongly linked with the productivity of labour.
Dr. Khatiwada further said that the budget was formulated in line with the government’s annual policy and programme.
He also stated that the budget was progressive and determined to achieve the goal of economic stability.