Govt. estimates 2.3 % Growth Rate

Kathmandu / May 26: The Government has said that the economic growth in the current fiscal year will remain at 2. 3 per cent. 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 Corona Virus across the globe.

The government had predicted 8.5 per cent economic growth for this fiscal year.

The economic growth rate had remained 7.3 per cent on an average in the past three years. Likewise, the per capital GDP for the current F/Y is estimated to increase by 7.5 per cent in 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 per cent as of mid-March this year. It was 4.3 per cent in the same period the previous year.

As a result of the steps taken to prevent and control Corona Virus, the total investment due to limitation in public and private expenditure is expected to decrease by 3.4 per cent 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 Sudur Paschim with 4.9 per cent and the lowest is of Bagmati state with 1.2 per cent. 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 per cent.

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 per cent 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.