KATHMANDU: Though the number of employees in Public Enterprises (PEs) has gone down, average expenditure on them has gone up despite poor performance.
“The average expenditure per employee per month has gone up to Rs 34,126 in 2009-10,” according to the Economic Survey.
The number of employees has come down to 33,526 in 2009-10 from a year ago’s 33,603. In a fiscal year per employee expenses has increased by Rs 7,016 from a year ago’s Rs 27,110, the annual performance report published by the Finance Ministry said, adding that the number of government entity in profit has, however, increased to 22 from 18.
But their contribution compared to government’s investment on them is lower than current interest rates. “The return stood at 5.8 per cent that is lower than the current interest rates, the report added.
The contribution of trading sector PEs is higher than the industrial sector PEs that also proves government’s total failure in running the industries.
The report revealed that only two PEs – Nepal Telecom and Industrial Sector Management Company –contributed Rs 4.80 billion – to the government coffer as dividends, though the 22 profit making PEs net profit increased by only Rs 8.3 million in a year to Rs 10.55 billion. The 14 PEs are still in red, though the government has appointed profession management on the basis of competition this year.
“Of the total Rs 179.94 billion revenue the government mobilised in 2009-10, the PEs dividends stood at a mere 2.67 per cent giving enough room to the government’s investment worthiness on the public entities. The government report also accepted that the regular strike by the unions has hurt government coffer.
The government investment on PEs comes to 11.88 per cent of the total capital expenditure.
PEs in profit (in 2009-10)
• Dairy Development Corporation
• Hetauda Cement
• Nepal Orient Magnesite
• Krishi Samagri Company
• National Seed Company
• Nepal Food Corporation
• The Timber Corporation of Nepal
• Industrial Estate Management
• Nepal Transit and Warehousing Corporation
• Nepal Airline Corporation
• Civil Aviation Authority of Nepal
• Gorkhapatra Corporation
• Rural Housing Corporation
• Nepal Doorsanchar Company
• Agriculture Development Bank
• National Life Insurance
• Nepal Industrial Development Corporation
• Rastriya Banijya Bank
• Deposit and Credit Guarantee Corporation
• Nepal Housing Finance
• Nepal Stock Exchange
• Citizen Investment Fund
PEs in loss (in 2009-10)
• Herbs Production & Processing Corporation
• Janakpur Cigarette Factory
• Nepal Medicine
• Udhaypur Cement Industry
• National Trading
• Nepal Oil Corporation
• National Construction
• Nepal Engineering Consultancy Service Centre
• National Productivity and
Economic. Development Centre
• Cultural Corporation
• Janak Education Materials Centre
• Nepal Television
• Nepal Drinking Water
• Nepal Electricity Authority