Binita Pokhrel, a start-up wine producer, was taken aback when she learned of the latest government rule mandating wineries to apply excise duty stickers with a QR code to the bottles they sell.
When the former KP Sharma Oli administration published its budget statement for the current fiscal year, they included the new regulation as part of their proposal.
“Everything is done in accordance with a plan.” Although our plan is often thrown into disarray as a result of new laws introduced by the government, which impose an immediate burden on us,” she explained.
In addition, the Oli administration established a programme to grant seed capital of Rs2.5 million at a rate of one percent interest in order to foster new businesses. However, the idea appears to have been forgotten once the new Sher Bahadur Deuba-led coalition government presented a revised budget last week, which included provisions brought in by the Oli administration through the ordinance method, according to reports.
“During this pandemic, there was no assistance from the government. “There isn’t a single piece of help for start-ups,” said Pokhrel, the founder of Pure Joy, which makes wine from various fruits.
Furthermore, the frequent changes in administration make things more difficult for start-ups and other firms who are wanting to expand.
“The frequent changes in government have a negative impact on economic growth. “It has an impact on the entire company’s plans,” Pokhrel explained. According to Pokhrel, who has been in business for almost five years, “the government develops plans and programmes for entrepreneurs, but these programmes rarely benefit us.”
The start-up provision has been left out of the Deuba administration’s revised budget for the current fiscal year, leaving entrepreneurs in a difficult situation.
Last Friday, the House of Representatives passed a revised budget that included the introduction of collateral-free subsidised loans for micro, small, and medium-sized enterprises, commercial farming, youth entrepreneurship, women entrepreneurship, foreign migrant returners, and the Dalit community.
The Finance Minister, Janardan Sharma, stated during the budget presentation that “I have established a provision for self-employment by offering loans to at least 500 unemployed youths from commercial banks through their branches in every municipality, with a priority on skill and entrepreneurship.”
In the revised budget, there was no mention of new businesses getting off the ground. The Oli government had intended to put measures in the budget into effect by establishing the Business Credit Flow Work Procedure 2021, which would be implemented by 2021.
The work method was intended to be executed on the first day of the new fiscal year 2021-22, which would be the first day of the new fiscal year 2021-22. However, two months have gone and the draught of the work method has come to naught.
Minister of Finance spokesperson Mahesh Acharya stated that the work method was currently being considered and that it had not yet been approved by the Minister of Finance. He went on to say that the government had not cancelled the programme that had been put in place to assist new businesses.
“Entrepreneurs have lost hope and have given up since there has been no clear communication from the government on such a severe issue,” said Kavi Raj Joshi, founder and managing director of Next Venture Corp. “There has been no clear communication from the government on such a significant issue.”
In his words, “start-up founders have given up on expecting backing from the government.” As a matter of fact, entrepreneurs have begun to seek investment on their own.
Businesses are suspicious about the implementation of provisions since, when a new administration takes over, it has a tendency to forget the policies and programmes put in place by the previous administration, according to the expert.
It is believed that the incoming government should either refuse to implement the provisions issued by the previous administration or should go against the previous administration and introduce new provisions of its own, according to him.
The measures for start-ups were drafted during the tenure of the late Nabindra Raj Joshi as industry minister, albeit they were not put into effect at the time.
According to entrepreneurs, the majority of start-ups are just operating in order to survive in the current economic climate.
In recent months, the economic environment has not been favourable for start-up entrepreneurs who are encountering difficulties as a result of protracted lockdowns and political upheaval. Furthermore, according to insiders, the government has provided zero assistance to new entrepreneurs in the country.
Business Credit Flow Work Procedure 2021 specifies that banks shall give subsidised loans in two instalments, according to the draught document. The project will serve as collateral for the loan, and the government will ensure that the loan is secured in accordance with applicable legislation. According to the work method, the selected start-up must repay the loan plus interest within seven years after receiving it.
Entrepreneurs believe that the government’s inability to put policies into effect will lead to a reduction in public confidence in the government system. Entrepreneurs will begin to leave the country if the government does not demonstrate a commitment to implementing programmes, according to the experts.
Every year, the government announces various programmes and subsidies for young entrepreneurs in the budget statement, but youths have complained that they have not been able to take advantage of the provisions because the benefits are given to people who have connections rather than to those who are in need.
Every year’s budget statement declares that the government is committed to reducing the trade deficit by encouraging domestic industry and prioritising domestic production; however, since the time I have been in business, I have not been able to witness this because implementation never occurs,” Pokhrel said.