27 May 2019, Kathmandu (RSS)
The government has predicted the seven percent economic growth rate in the current fiscal 2075-76 BS (2018-19).
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 unveiled by Finance Minister Dr Yuba Raj Khatiwada stated that most economic, social and physical infrastructure development indicators in the current fiscal were encouraging. On the occasion, the minister went on to say that notable improvement was witnessed in financial sectors in the fiscal year 2075/076 BS.
Nation’s economy is making its headway towards a high growth due to improvement in investment atmoshphere in the wake of political stability at home, regular power supply and a rise in development efforts at the local level, the minister said while citing the report.
Expansion of economic activities has resulted in the increase of per capita income; people’s saving capacity has increased with the rise in 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 the 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.
