Government is unable to clear dues of construction companies
Kathmandu, April 14: The government is yet to clear dues worth 60 billion rupees of different construction companies even after the completion of projects long ago.
Many construction companies are facing problems after the government didn’t clear the dues.
According to the Federation of Nepal Construction Entrepreneurs, the construction companies are yet to get 60 billion rupees from the government.
Around 24 thousand big and small construction companies nationwide have not received the dues even after completing the government projects on time.
Such an act by the government has contributed to further non-performance of the economy, even during the recession period.
If the government clears the dues of the construction companies, it will also benefit from receiving 13% VAT, 1.5% advance income tax, 5% deposit, etc., which are going to be deposited into the government account, adding to the government revenue.
As the government has failed to meet the revenue collection target, it has no funds to clear dues. According to the latest report, the government has failed to meet the target by 3 trillion rupees in the third quarter of the current fiscal year. The government is compelled to spend the treasury on the salaries and allowances of government employees and political representatives. To clear the expenditure on the capital sector, the government needs to raise debts.
If the government doesn’t think about reducing the non-productive sector expenditure, or say, scrapping of the federal structures, it may face a serious financial crisis.
People’s News Monitoring Service.
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