Economic Survey: Govt projects 3.9 % growth for FY 2023/24; Policies and programmes aim to fulfil national aspirations: PM Prachanda

Kathmandu / May 26: The government has forecast a 3.9 percent economic growth rate for the current fiscal year 2023/24.

Amidst disruptions from the main opposition party, Nepali Congress, Finance Minister Barsha Man Pun presented the Economic Survey for the fiscal year 2023/24 AD and the Annual Review of Public Enterprise 2081 BS, in a parliamentary session.

Minister Pun said that the total investment is expected to rise by 3.8 percent, with Per Capita Income (PCI) projected to reach $1,456. Inflation stood at 6.08 percent as of mid-March in the current fiscal year, and revenue collection increased by 6.9 percent in the same period.

“The survey reflects and analyzes the overall economic, social, sector-wise development, and governance at federal, provincial, and local levels during the last fiscal year and up to eight months of the current fiscal year,” said Pun.

Despite contractions in the productive, industrial, and construction sectors, the growth in agriculture and services sectors is expected to drive the 3.9 percent economic expansion. The economic growth rate in Gandaki, Bagmati, and Lumbini provinces is anticipated to exceed the national average. The total investment is expected to increase by 2.8 percent, reaching Rs 1.741 trillion this fiscal year.

Minister Pun said that the average consumer price inflation was 6.08 percent until Fhagun (March 13, 2024) of the current fiscal year, with revenue collection from the federal government increasing by 9.7 percent, reaching Rs 639.05 billion. Federal expenditure increased by 2.9 percent to Rs 801.58 billion during the same period.

“The total public debt reached Rs 2.38826 trillion until mid-March, with domestic debt at 49.6 percent and external debt at 50.4 percent. Provincial and local levels received Rs 517.62 billion in the fiscal year 2022/23 AD, including Rs 397.26 billion from fiscal transfers from the federal level and Rs 120.26 billion through revenue allocation,” said Minister Pun.

He said that the financial sector is gradually improving, with adequate liquidity in the banking system and decreasing loan and deposit interest rates. Likewise, loan disbursement to the private sector as of mid-March of the current fiscal year increased by 5.6 percent.

With the expansion of the banking network and promotion of financial literacy, the population per bank branch has reached 2,515, and electronic transactions have increased.

Policies and programmes aim to fulfil national aspirations: PM Prachanda

Prime Minister Pushpa Kamal Dahal ‘Prachanda’ has said that the government’s policies and programmes for the coming fiscal year aim to fulfil the national aspiration of building a prosperous Nepal.

He added that good governance, and social justice for social and economic transformation towards socialism as specified by the constitution are the major topics contained in the policies and programmes. Prime Minister Prachanda came up with this view, responding to the amendments put by the lawmakers on the government’s policies and programmes.

PM Prachanda expressed his gratitude for the constructive suggestions and feedback received from the parliamentarians through the amendment proposal. “Parliamentarian Chitra Bahadur KC has submitted a 16-point amendment proposal on the proposed policies and programmes, some of which require amending the language and wordings while some require additional amendments,” he said, adding that the proposed amendments on health, education, labour, nationality and foreign policy headings are important.

He said that the government has emphasized on the development of a self-reliant agricultural economy, promotion of entrepreneurship, infrastructure development and job creation to develop the information technology sector as the main driver of production and productivity growth.

The Prime Minister also informed the House that some specific programmes have been proposed for access to justice for the socially marginalized and oppressed classes.

Prior to this, MP Prem Suwal proposed amendments to the proposed policies and programmes on 48 points.

Prime Minister Prachanda said that suggestions such as economic equality, social justice, development, nationalism, foreign policy, education, health, and investment promotion will be taken seriously in the proposed amendment.

“The government will insist on the immediate endorsement by the Parliament of the Bill on Khwopa College and some of the amendments are of the nature of amendment of the Constitution and Laws, therefore, require discussion in the Parliament,” he said.  

Prime Minister Prachanda assured that the amendments received from the parliamentarians on the proposed policies and programmes will cover the additional issues mentioned in the annual budget statement the Government is to present in the Parliament on Jestha 15 (May 28). RSS