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Govt. forecasts seven percent growth

Kathmandu, 27 May: The government has predicted seven percent economic growth rate in the current fiscal.

An economic survey report of the past eight months of the current fiscal presented by the government today before the House of Representatives noted that inflation rate on overage during this period will remain at 4.2 percent.

The report stated that most economic, social and physical infrastructure development indicators in the current fiscal were encouraging.

According to it nation’s economy is making its headway towards a high growth due to improvement in investment climate in the wake of political stability at home, regular power supply and a rise in development efforts at the local level.

Expansion of economic activities has resulted in the increase of per capita income; people’s saving capacity has increased with the rise in Gross Domestic Product (GDP) and the internal saving exceeded 20 percent of GDP for the first time in many decades and it has significantly contributed to the building of national capital.

It is cited that policy-level and legal reforms made for attracting domestic and foreign investment have gradually paved way for sustainable and high economic growth. However, trade deficit is predicted to remain high due to expansion of import of industrial and capital goods for high investment and a limited export size.

The report projected the population living below the absolute poverty line will decrease to 18.7 percent from existing 21 percent. Per capita income is estimated to reach 117,000 and per capita purchasable income has been predicted to touch 155,000.

The total investment is likely to increase by 29 percent and reach Rs 267 billion. Till the month of Fagun(mid-March), the total government expenditure increased by 2.2 percent compared to the corresponding period last fiscal year and reached Rs 541 billion. Similarly, Rs 500 billion revenue has been deposited in the Federal Reserve Fund which is 21.7 percent more than of the previous year.

Similarly, commitments for additional Rs 107 billion foreign assistance including grants have been received. Till the same period, the total public debt is Rs. 978 billion including the foreign loan.

Commercial banks have reached 713 local levels, out of total 753, while the total number of banks and financial institutions has reached 4,701. Some 18 percent citizens have their access to insurance and the total export increased by 14.6 percent to touch at Rs 61 billion while the import of goods went up by 23.8 percent and was calculated at Rs 949 billion.

The total goods trade deficit has remained Rs 888 billion. The inflow of remittance has reached Rs 582 billion, a 23.4 per cent rise than the corresponding year. There has been a 35.9 per cent of drop in the number of the Nepali migrant workers leaving for greener pasture with labour permit in the past eight months.

As many as 7,953 jobs were estimated to be created in the country as commitment of foreign investment worth Rs 11 billion for 218 industries in the country was received as of mid-March. According to the survey, a total of 77. 8 percent of the total population in the country had access to electricity while the total electricity generation in the country was pegged at 1142 megawatt.

People’s News Monitoring Service

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