– RAJENDRA KUMAR KHETAN

RAJENDRA KUMAR KHETAN is a noted industrialist. Vice president of Confederation of Nepalese Industries (CNI), Khetan spoke with SPOTLIGHT on issues related to recent budget and the overall economic condition. Excerpts:
In brief, how do you assess the recent budget from the perspective of business community leader? Does the budget lack anything?

Budget has tried to cover all aspects of development of society. It is like a regular budget. It, however, lacks policy issues. It also depends on a number of things as politically we are in transition period. Besides, the rebel force has not accepted it. However, the country needs resources to meet expenses. The country and administration has to go on come what may. If the budget has been formulated for the full year and if it had to be compatible with five year plan, then, yes, it lacks a lot of issues, which could have brought rapid growth.

Many experts say the budget has “scattered resources” and, therefore, not implementable. What do you say?

I agree with this assessment. That’s why, I have been saying that this budget is “Jack of all and master of none.” It tries to address each and every issue but manages to do so in only few cases. It also suffers from the problem of fluid political situation.

Did the budget meet the expectations of business community?

Not at all. For us there is nothing new in this budget. Instead of stopping leakage on revenue front, it has rather imposed tax on domestic products. There are a few mistakes like imposing more tax on low-alcohol-based beverages and less tax on high-alcohol-based beverages, which seems like an institutional corruption committed by revenue administrators.

Do you think the budget is over- ambitious regarding revenue target and foreign aid expectations?

In the revenue front, it is ambitious as business environment is still down. Foreign aid may come but it also depends on where and how we want to use it. Amount expected on aid front is not ambitious.

Do you think this budget can be implemented given the uncertain political course?

The manner in which the CPN (Maoists) has reacted against the budget, it seems the government would face difficulties to implement the same. But if this can become seven party’s proposal and could add what Maoists want on economic front, probably it can become a common document and, therefore, be able to implement.

What is your most important suggestion to the Finance Minister?

I want to suggest the Finance Minister to establish Special Economic Zones (SEZs); develop more sectors for investment, allow export houses to work for SMEs and develop Nepal as SAARC hub, among others.

Would the Minister achieve growth target of 5 percent that he has set?

It is not a difficult target. But morale of business community is down as trade union movement is picking up on the one hand, and new and more taxes are being imposed, on the other hand. If industry’s morale couldn’t be boosted, it may be difficult to attain 5 percent growth.

The Minister claims that this budget will help rural areas. Do you agree?

Yes and No. Yes, because it touches upon subjects like rural road access and agriculture development. No, because until the political settlement at VDC level is achieved, the fund can’t be used.

(Courtesy: Spotlight)