7pc growth expected in current fiscal

Kathmandu, May 27

The government has predicted an economic growth rate of seven per cent in the current fiscal year 2018-19.

As per an economic survey report of the past eight months of the current fiscal presented by the government today, inflation rate on average during this period will remain at 4.2 per cent.

The report unveiled by Finance Minister Yubaraj Khatiwada stated that most economic, social and physical infrastructure development indicators in the current fiscal were satisfying. On the occasion, the minister went on to say that notable improvement was witnessed in the financial sector in the ongoing fiscal.

Minister Khatiwada also claimed that the country recorded an increase in per capita income, gross domestic product and saving capacity this year. He mentioned that the level of poverty too has significantly dropped in the country.

He further added that the legal and policy reforms that have been made to attract domestic and external investment would ease the growth process.

The nation’s economy is heading towards high growth due to the improvement in investment atmosphere in the wake of political stability in the country, regular power supply and a rise in development efforts at the local level, Khatiwada stated.

He also mentioned that expansion of economic activities has resulted in the increase in per capita income.

As per the report, people’s saving capacity has also increased with the rise in gross domestic product and the internal saving rate exceeded 20 per cent of GDP for the first time in many decades and it has significantly contributed to the building of national capital.

Minister Khatiwada stated that the policy-level and legal reforms made for attracting domestic and foreign investment have gradually paved the way for sustainable and high economic growth. “However, trade deficit is predicted to remain high due to expansion in import of industrial and capital goods and a limited export size.”

Till mid-March, the total government expenditure increased by 2.2 per cent compared to the corresponding period of last fiscal year and reached Rs 541 billion.

Similarly, Rs 500 billion revenue was deposited in the Federal Reserve Fund, which was 21.7 per cent more than of the previous year.

Similarly, commitments for additional Rs 107 billion foreign assistance, including grants, have been received.

Meanwhile, total public debt during the period stood at Rs 978 billion, including foreign loans.