CBFin has expressed confidence that the economy will remain buoyant due to tax reforms, investment promotion, the digital economy, and historic reforms in the banking sector.
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The Confederation of Banks and Financial Institutions Nepal (CBFIN) believes that the budget for the fiscal year 2083/84 will make the economy dynamic with the policy and structural reform initiatives taken towards economic revival, boosting private sector morale, promoting investment, and building a production-oriented economy.
‘The country’s economy and economic activities, which have been dormant for some time, weak confidence in the private sector, a ‘wait and see’ attitude among investors, and the expected credit expansion from the banking sector have not been achieved,’ the federation’s statement said. ‘In a context affected by the challenge of increasing bad loans, the budget presented has created a new basis of hope and confidence to revive the economy and economic activities.’
In particular, the reforms made in the tax system, the concessions provided to industry and business, the promotion of the digital economy, priority given to technology and infrastructure development, emphasis on the development of the energy sector, the creation of investment-friendly policies and the creation of an environment, and the banking sector are becoming very challenging. The Confederation has stated that the historic announcement to establish a national asset management company with special powers for the efficient management of bad loans and non-banking assets has come as a very visionary, positive and timely step. The budget clearly prioritizes investment, entrepreneurship, innovation and expansion of financial access by embracing the private sector as a key partner and driver of economic growth. The Confederation believes that the increase in the exemption limit in personal income tax, review of tax rates, customs facilitation on industrial raw materials and arrangements for capital mobilization through alternative financial instruments will inject positive energy into the overall economic activity. The Confederation has stated that the budget will create an important foundation for the economy to move towards high economic confidence, including expansion of internal and external investment, development of entrepreneurship, job creation, growth in production, and renaissance of the private sector.
The Confederation expects the Government of Nepal to move forward by focusing on policy stability and collaboration with the private sector for the effective and effective implementation of the people-oriented and development-oriented policies and programs mentioned in the budget.
