Kathmandu: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has suggested that the next fiscal year's federal budget should be determined based on the government's spending capacity.

During FNCCI's pre-budget discussion for FY 2024/25, FNCCI President Chandra Dhakal suggested that while the budget size has consistently increased, government expenditure has not kept pace.

The FNCCI has recommended that the next fiscal budget be only 10 percent larger than the actual spending in the current fiscal year. So far, the government has managed to spend only 60 percent of the total budget of Rs 1751 billion.

The FNCCI has stated that increasing the size of the budget will put pressure on revenue and internal debt. They have suggested bringing a smaller and more realistic budget.

The federation has demanded that products based on local raw materials should be given concessions to promote exports and replace imports. On behalf of the federation, President Dhakal suggested that the monetary policy should be flexible, noting a problem due to the lack of coordination between monetary policy and the budget.

The FNCCI emphasized the necessity of making a policy to use local products, even though they are 20 percent more expensive. Additionally, the FNCCI noted that the incentives given to the energy sector in 2015 will end in 2025 and suggested extending these incentives until 2030.