Economy is on right track, claims Dr Jyoti

Kathmandu, February 6:

Dr Roop Jyoti, state minister for finance, has claimed today that economy is on right track and, the government would not go ‘bankrupt’.

Few days ago, Institute for Development Studies (IfDS), an institution involved in the monitoring of the economy headed by Dr Raghav Dhoj Pant, had claimed that the economy might go bankrupt if the current situation prevails for few more months.

Dr Jyoti, speaking at a press meet, said that in the first six months of the current fiscal year, the revenue collection has touched over Rs 31 billion, which is higher in comparison to the same period last year.

According to the statement distributed by Dr Jyoti, Nepal has yet to receive excise duty worth over Rs 2 billion from Indian government in the current fiscal year, which would be received within this fiscal year that will help maintain sound financial position. “During the current fiscal year, until January 27, over Rs 47 billion has already been released from the Nepal Rastra Bank (NRB),” he said. “As of today, the government has received Rs 7.88 billion in foreign aid, which was only Rs 4.93 billion during the same period in the last fiscal year. As per the figures of the central bank, foreign aid has increased by Rs 2.95 billion during the review period.”

He claimed that NRB had sufficient reserve of Indian currency and the apex bank has not taken any overdraft facility from Indian Reserve Bank, and there is no need to do so as well. “The government’s cash reserve, at present, stands at Rs 2.93 billion,” he informed, “NRB has over Rs 146 billion foreign currency reserves which is sufficient to meet the merchandise imports for 10 months.”

Dr Jyoti clarified that with sufficient cash reserves, the claim that the government is going to be bankrupt is not true. “The estimated price rise due to hike in petroleum products in India and here, predicted by NRB is under control and inflation has not gone beyond our control,” Dr Jyoti assured.