Kathmandu. KATHMANDU: The Confederation of Banks and Financial Institutions (CBFN) has said that the budget presented by the government for the fiscal year 2083/84 would play a significant role in reviving the sluggish economy and boosting the confidence of the private sector.

In a statement on Sunday, CBFIN welcomed the government’s efforts to revitalize the economy, promote investment, boost the morale of the private sector and build a production-oriented economy.

Cibfin said the budget has raised the ground for the government’s confidence to revive the economy amidst challenges such as a sluggish economy, low confidence from the private sector, a wait-and-see attitude among investors, a slow flow of credit from the banking sector and a growing number of bad loans.

According to the CBFIN, the reform of the tax system, concessions provided to industries and businesses, promotion of digital economy, emphasis on technology and infrastructure development, priority to the energy sector and investment-friendly environment are positive. “The announcement to set up a national asset management company with exclusive powers to manage bad loans and unbanked assets is a forward-looking and timely step,” CBFIN said in a statement.

The budget acknowledges the private sector as a key partner for economic growth and prioritizes investment, entrepreneurship, innovation and expanding financial access, according to Cibfin. Increase in the limit of personal income tax exemption, review of tax rate, customs facilitation on industrial raw materials and arrangement of capital mobilization through alternative financial instruments are expected to have positive impact on economic activities.

Likewise, the budget has prepared an important foundation for steering the economy towards high economic confidence through expansion of domestic and external investment, job creation, production growth and a renaissance of the private sector.