Kathmandu, May 27: The Economic Survey for the fiscal year 2082/83, presented in the Federal Parliament by Swarnim Wagle, has stated that Nepal’s macroeconomic indicators have shown improvement despite uncertainty in the global economy and ongoing regional conflicts.
According to the survey, Nepal’s economy is projected to expand by 3.85 percent in the current fiscal year. While the global economy is expected to remain limited to 3.1 percent growth, the government claims that Nepal will maintain a positive economic growth rate.
The government estimates that the size of Nepal’s total economy will reach Rs. 66 trillion during the current fiscal year, while per capita national income is projected to rise to 1,535 US dollars.
Province-wise, Bagmati and Gandaki provinces are expected to record economic growth rates higher than the national average, while the growth rates of other provinces are projected to remain below average. The survey states that the agriculture sector will contribute 24 percent to the Gross Domestic Product (GDP), while the non-agriculture sector will contribute 76 percent.
The survey notes that Bagmati Province continues to maintain a dominant role in economic activities, contributing 36.7 percent to the GDP. However, it also indicates persistent challenges in the agricultural sector, estimating that paddy production will decline by 4.20 percent to 5.705 million metric tons.
On revenue and government expenditure, federal revenue increased by 3.2 percent by mid-March (Falgun), while government expenditure rose by 10.4 percent. However, the survey points out that capital expenditure has not met expectations.
Public debt has reached Rs. 2.878 trillion, equivalent to 43.6 percent of the GDP. The survey also states that the government mobilized Rs. 300 billion in public debt during the current fiscal year.
Indicators related to the external sector appear comparatively strong. Remittance inflow increased by 37.7 percent, reaching Rs. 1.45 trillion. Foreign exchange reserves rose to Rs. 3.414 trillion, which is said to be sufficient to cover imports of goods and services for up to 18.5 months.
However, the trade deficit increased by 11.2 percent to Rs. 1.098 trillion, which has been identified as one of the major challenges facing the economy. The survey also highlights significant expansion in technology-friendly payment systems. By mid-March, transactions conducted through QR codes had exceeded Rs. 125 billion.
Overall, the Economic Survey concludes that although there are positive signs in the external sector and macroeconomic indicators, challenges remain in domestic production, investment expansion, and maintaining trade balance.
People’s News Monitoring Service.
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