Govt estimates 2.3 percent growth rate this fiscal year

MCC Compact

KATHMANDU, May 26: The Government has said that the economic growth in the current fiscal year will remain at 2. 3 percent. The economic survey 2076/77 presented by Finance Minister Dr. Yubaraj Khatiwada at the Federal Parliament today states that the growth rate is very low compared to what the government determined due to the impact of novel coronavirus (COVID-19) across the globe. The government had predicted 8.5 percent economic growth for this fiscal year.

The economic growth rate had remained 7.3 percent on average in the past three years. Likewise, the per capita GDP for the current F/Y is estimated to increase by 7.5 percent compared to the previous year to reach 1,085 US dollars.

Sharing that inflation remained below average in the past few years compared to the past decade, Finance Minister Dr. Khatiwada said that the consumer inflation rate stands at 6.5 percent as of mid-March this year.  It was 4.3 percent in the same period the previous year.

As a result of the steps taken to prevent and control the pandemic, the total investment due to limitation in public and private expenditure is expected to decrease by 3.4 percent in compared to the previous F/Y to stand at 1,889 billion 260 million rupees.

Among the State-wise GDP growth rate in the current F/Y, the highest is Sudurpaschim with 4.9 percent and the lowest is of Bagmati state with 1.2 percent. Likewise, Karnali has 3.6, Stae no. 1 3.4, Gandaki state 2.7 and State no. 2 has an estimated GDP growth rate of 2.3 percent.

The economic survey also states that development aid worth Rs. 109 billion 280 million has been committed as of mid-March this year. Furthermore, the total government expenditure increased by 12.9 percent to reach 610 billion rupees in the same period including Rs. 450 billion worth of current expenditure and 96.48 billion capital expenditure.

As of mid-March revenue collection was Rs. 546 billion 790 million. RSS