Thursday, June 25, 2009

BUDGET BUZZ: Provide relief to people

In the course of forming the budget for the fiscal year 2009-10, the government should be serious in its political efforts to write the new constitution and provide relief to the general public as well. In addition, here are some candid suggestions for making the new budget which will help meet the minimum expectations of people.
* Enforcement of rule of law and security all over the country (end to impunity, lawlessness and bandh culture).
* Clear vision about growth-oriented economic policy (emphasis on pro-poor and inclusive policies).
* Tighter fiscal management by targeting subsidies at a marginal class.
* Comprehensive industrial policy with labour flexibility (address labour problems with the right to invest and investors).
* Financial sector reforms by raising foreign direct investment in major industrial areas.
* Favourable investment climate by introduction of investment allowance and lower corporate tax rate to spur growth.
* Incentives for private sector investments in health care and infrastructures status for making inclusive growth a reality.
* Tax holiday for 100 per cent export oriented units to receive investment in export production capacity.
* Special export incentives for readymade garments, carpets and other value added exports to create jobs for jobless workers.
* Immediate action against power shortage problems through purchase agreement with India and warfooting action plan for constructing transmission lines (on both sides of the border).
* Focus on increasing the overall share of non-agriculture sector in the economy.
* Immediate action to reduce inflation to single digit.

Former chairman,
Securities Board of Nepal (Sebon)

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