Economic Survey presented in Parliament, GDP growth meager 0.77 %

Kathmandu, May 26: The government presented the Economic Survey for the fiscal year 2072/073 in the Legislature-Parliament today.

According to the Survey, the GDP is estimated to grow by 0.77 percent in the current fiscal year. The GDP growth rate last year was 2.32 percent.

A decrease in the growth of the agriculture sector, maximum impact on the non-agricultural sectors due to the earthquake and the obstruction at the border area with India and its impact on the supplies are attributed to the low economic growth in the current fiscal year.

The agriculture sector’s growth rate is projected to increase by 1.3 percent in the current fiscal year while that of the non-agricultural sector by 0.6 percent.

Similarly, the production in the industry sector dropped by 6.3 percent in the current fiscal year whereas the production in the service sector increased by 2.7 percent, according to the Survey. This shows that with the structural change in the economy, the contribution of the industry and agriculture sectors to the GDP was miniscule while that of the service sector is gradually growing.

As against the estimated total revenue mobilization of Rs 475 billion in the current fiscal year, it is recorded at only Rs 231 billion in the last eight months of the current fiscal year.

The Economic Survey shows that the inflation has unexpectedly risen in the current fiscal year as compared to the previous fiscal year. The increase in the price index of the food and beverage group in the last eight months of the current fiscal year is 10.3 percent and that of the non-food items and service group was 10.2 percent. The price index of the food and bevearage group and non-food items and service sector was 9.5 percent and 4.9 percent respectively in the same period of the previous fiscal year.

Energy crisis, illegal export, import and financial instability major challenges of Economics

Meanwhile, the government has stated that the energy crisis and illegal export and import, and maintaining financial stability were the major challenges to lead the nation on the way to prosperity and that getting rid of such challenges were the need of the hour.

This is stated in the Economic Survey for the fiscal year 2072/73 the Finance Minister Bishnu Prasad Paudel presented in today’s parliament meeting.

In an economic survey has stressed on ending energy crisis to achieve high economic growth rate after mobilizing domestic and foreign investment.

Similarly, it is stated that there were challenges to modernize and commercialize the agriculture sector after managing the irrigation facility, reaching skilled manpower, advanced seeds, fertilizer among other for the same.

The market management for the agricultural productions and marinating the quality in the sector were also major challenges.

The survey further reads that constructing the hydro projects in a partnership of private sector was essential to attract foreign investment, establishing productive industries in private investment, infrastructure development and industrialization.

Issues related encroaching the lands; labour relations and protest of the locals also have affected the developmental projects in course of constructing infrastructures.

The survey has stressed the need for all Nepalis including political leadership, civil society and consumers to focus on carrying out development in the country to sort out these challenges.

The survey also said that there are challenges in providing skill-oriented trainings as per the need of domestic market, increasing employment opportunities at home, providing orientation training to those seeking employment abroad and investing remittances provided by Nepali migrants in productive sector.

It pointed out the need for bringing informal economy and illegal financial transaction of import and export business, foreign currencies and hundi onboard formal economy.

It also called for collective efforts by all sectors to gain economy growth by ensuring the development of financial sector, maintaining stable finance and increasing financial access. RSS