Kathmandu, May 29
Finance Minister Dr. Yuba Raj Khatiwada has
said that the government would mobilise about Rs. 60 billion in relief being
offered to the business and industries.
"The relief
will be provided in the forms of cash, subsidy, tax and fine discounts and
concessional loans and the cumulative amount would reach Rs. 60 billion,"
he said in the post-budget interaction with journalists at the Ministry of
Finance Friday afternoon.
According to him, the refinancing facility
to the businesses amounts to Rs. 20 billion and the government has to mobilise
Rs. 14 billion to subsidise the interest of the business loans. The budget for
the coming fiscal year 2020/21 has announced to provide business loan at 5 per
cent, and the rest of the interest, about 6-7 per cent, will be paid to the
banks and financial institutions by the government.
The Finance Minister said that the tax
discount would benefit the business community with Rs. 6.5 billion. Likewise,
demand charges on electricity for industries are waived off and water supply
and irrigation facilities would get the energy at 50 per cent discount in the
normal charges. The energy bill is also discounted for the individual
households as well.
"The government will pay the social
security of the private sector workers for the lockdown period," said Dr.
Khatiwada. We have to mobilise large investments to achieve high growth,
private sector investment is key to it, he added.
He said the budget was labour-centred and
aims to create jobs, provide social security and relief to the workers.
"We aim to create about 500,000
additional employments in various sectors like business, industries,
infrastructure and self-employment. Opportunity of jobs in Nepal should be
given to Nepali citizens," he said. "It is also critical as the
country is going to have a large number of migrant youths who immediately need
jobs."
The Prime Minister Employment Programme has
received about Rs. 14 billion which is expected to create more than 200,000
employment. FM Dr. Khatiwada also expressed intention to collaborate with the
private sector in developing skills of youth so that they would have better
opportunities.
"Employment is another priority
sector. A large number of people have lost their jobs and at the same time
migrant Nepali workers will return from foreign land. There is a need to create
at least a million job," he said.
He maintained that the budget included
cautious moves and immediate programmes to address the economic bruises as well
as social and business needs.
According to him, the budget aimed at
creating competing economy and sustainable development and mobilising large
amount in the social sectors like health, education, labour and welfare of
senior citizens and children.
Budget to health and agriculture has gone
up significantly for the next fiscal year.
Dr. Khatiwada praised the local bodies'
roles during the coronavirus. "Local bodies' work during the coronavirus
crisis is highly appreciable. They need more resources to strengthen their
governance. Therefore, I have not cut down their share in the budget," he
stated.
He expressed confidence at managing the
foreign loan and grants as stated in the budget. "About Rs. 125 billion is
available as the budgetary support while multilateral donors have pledged to
provide more support. Meanwhile, some bilateral donors also have shown interest
in supporting the small and medium enterprises and agriculture."
Regarding the increased customs duty of
electric vehicles, he said that there was a trend of importing expensive and
luxury vehicles which was against the government intention to discourage the
luxury goods. "Extremely low duties will ultimately result in the import
of a large number of expensive vehicles which will fail the government policy
to discourage the import of luxury vehicles," he said.
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