71pc of govt spending goes towards import

KATHMANDU: The exponential growth of import against sluggish export is causing huge outflow of government spending in import, shows a recent study conducted by Nepal Rastra Bank (NRB).

“Out of every Rs 100 spent by the government, Rs 71 goes towards import of goods.” The NRB study has revealed that there is low probability of high deposit growth along with accelerated government spending as only 29 per cent of the government spending remains in the country.

Nara Bahadur Thapa, executive director of the Research Department of NRB, said that government spending cannot be considered as the effective source of deposit collection of banks and financial institutions.