Nepal’s economic growth rate to be lower

KATHMANDU: The economic growth rate of the country is expected to be lower than last year due to unfavorable environment of the country, Finance Minister Shankar Prasad Koirala said while releasing the country’s macro-economic indicators of the current economic situation in the budget on Tuesday.

The agriculture growth rate would be lowered at 1.3 percent in the current Fiscal Year while non-agriculture sector growth rate is expected to remain at 4.8 per cent, Minister Koirala said.

According to Koirala, the revenue collection stands at Rs 177.96 billion during the first seven months of the current fiscal year. Of the total revenue, tax revenue is Rs 156.78 billion and non-tax revenue is Rs 21.18 billion.

The total revenue is higher by 23.2 percent than the same period in the last fiscal year.

Similarly, country’s trade deficit is on the rise due to increase in imports. The trade deficit has remained equivalent to Rs 308 billion until the first eight months of the current fiscal year.

Total imports have reached Rs 358 billion, which is 24 percent higher than the same period last year, he said.

During this period, total export remains equivalent to Rs 50 billion, just 5 percent higher than the last year.

Despite the high trade deficit, the balance of payment is surplus by Rs 1.59 billion until mid-February due to increase in income from services and remittances.

Similarly, the service sector growth is expected to remain at 6 percent and industrial sector growth at 1.5 percent.

The economic growth rate is projected to be at 3.6 percent in basic prices in current Fiscal Year 2012-13, Minister Koirala said.

Similarly, inflation in mid-February 2013 remains at 10.1 percent against the target of 7.5 percent.

On the public finances, until the mid-March of this current Fiscal Year, current

expenditure reaches to Rs 129.88 billion, capital expenditure reaches to Rs 13.42 billion and financial management reaches to Rs 11.50 billion.

This amount is 44 percent of the total amount that was authorized by Ordinances related to the Expenditures for Services and Works.