Nepal | June 03, 2020

Govt claims it can achieve targeted growth rate of 7.2pc

Pushpa Raj Acharya
Share Now:
  • Record high paddy production and Rs 30bn election expenses seen as major stimulants

A view of paddy field growing Pahelpur (an Asian variety) rice in Dhakaniya village of Kanchanpur district, on Monday, October 9, 2017. Photo: RSS

Kathmandu, October 10

At a time when multilateral development partners — World Bank and Asian Development Bank — have made forecasts that the growth rate will decline moderately from around 4.5 per cent to 4.7 per cent, compared to 6.9 per cent in the previous fiscal, the government has said the high growth rate of last fiscal can be achieved this fiscal too.

According to the Ministry of Finance, the country will achieve the targeted growth rate of 7.2 per cent this fiscal as paddy production will break last year’s record of 5.23 million tonnes. Paddy production is expected to hover at around 5.3 million metric tonnes this fiscal.

While making the growth forecast, development partners assumed that losses borne by the agriculture and livestock sectors due to recent floods would bring down the growth rate by around one percentage point.

However, a recent survey carried out by the Ministry of Agricultural Development has projected paddy production to increase in comparison to the last fiscal. “Based on our best judgement survey by mobilising district agriculture officers, we have projected paddy production to hover around 5.3 million tonnes,” said Yogendra Kumar Karki, spokesperson for MoAD.

“Productivity is expected to rise to 3.46 tonnes per hectare this fiscal compared to 3.36 tonnes per hectare in the last
fiscal.”

According to Karki, the MoAD had set paddy production target of 5.4 million tonnes for this fiscal, which could come down slightly to 5.3 million tonnes as floods inundated paddy fields in the Tarai.

Following the MoAD’s estimation of record-high paddy production, the MoF claimed that the growth rate would not decline as projected by the World Bank and Asian Development Bank.

Paddy production has a direct impact on economic growth as paddy accounts for one-fifth of total agricultural gross domestic product of the country and the agriculture sector contributes 28 per cent to the GDP.

Though development expenditure is still slow, improved agricultural production, post-earthquake reconstruction activities, increase in wholesale and retail trade, fiscal transfer to the local levels and expenses for elections will stimulate economic growth, according to Finance Secretary Shanta Raj Subedi.

“The government is spending Rs 30 billion for the two-tier polls — provincial and parliamentary — that will be held in the near future, which is expected to boost economic activities in the country and support economic expansion,” added Subedi.

Finance Secretary Subedi, however, said that it will be challenging for the country to sustain the high economic growth in the coming fiscal years without attracting massive domestic and foreign investments in infrastructure and production sectors to transform the country from an import-based economy to production-led economy.

The country needs to achieve 7.5 per cent growth for the next 10 years to be able to fulfil its aspiration of becoming a middle-income country by 2030.

READ ALSO:


A version of this article appears in print on October 11, 2017 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Fear-triggered attack on healthcare worker in Doti

DHANGADHI: A healthcare worker carrying medical supplies to a health post has been attacked amid the fear of coronavirus transmission in Doti. According to health coordinator at Shikhar Municipality-9 Harish Shah, Auxiliary Health Worker (AHW) Ramesh Kunwar, stationed at Dankot Health Post in the Read More...

Quarantine facilities in Sudurpaschim crammed as returnees from India surge

DHANGADHI: The quarantine facilities across Sudurpaschim Province have become over-crowded due to the influx of incoming Nepali migrant workers from India. As recorded at the Administration Office in Kailali, approximately 2,000 to 5,000 migrant workers have been regularly entering the provin Read More...

18 discharged after recovering from coronavirus infection in Dharan

DHARAN: As many as eighteen persons have been discharged from Dharan-based BP Koirala Institute of Health Sciences (BPKIHS) after recovering from COVID-19, on Tuesday. Following two back to back negative results, 17 men from Jhapa and one Dharan native woman were allowed to return home owing Read More...

Highlights: Nepal witnesses highest single-day spike in coronavirus cases

KATHMANDU: Nepal's Health Ministry, in its regular press briefing, shared the latest updates on coronavirus contagion from across the country, and the government’s response to the health crisis. As of today, 75,343 tests through Polymerase Chain Reaction (PCR) method and 116,345 Rapid Diagn Read More...

Anupam Kher reminisces Naam Shabana memories with throwback picture

KATHMANDU: Bollywood actor Anupam Kher has reminisced memories from Naam Shabana by sharing a throwback picture of the film's cast on his Instagram on June 2. In the photograph one can see the cast of the 2017 action-thriller — Kher along with Neeraj Pandey, Taapsee Pannu, Manoj Bajpayee, Read More...

45 patients discharged, Nepal's coronavirus recovery tally progresses to 266

KATHMANDU: Forty-five persons earlier diagnosed with coronavirus infection, admitted across various health care facilities have been discharged following recovery, confirmed The Ministry of Health and Population. A 54-year-old woman of Makwanpur, undergoing treatment at the Maharjgunj-based Tribh Read More...

India approves emergency use of remdesivir to treat COVID-19 patients

BENGALURU: India's government said on Tuesday it has approved Gilead Sciences Inc's antiviral drug remdesivir for emergency use for five doses in treating COVID-19 patients. Remdesivir, which is administered intravenously in hospital, is the first drug to show improvement in COVID-19 patients in Read More...

Person in quarantine reported missing after being swept away by river

POKHARA: A person kept in a quarantine facility in Malika Rural Municipality of Myagdi district has gone missing as he was swept away by a river, on Tuesday. The missing 19-year-old was a resident of Dhaulagiri Rural Municipality-7. It has been learnt that he had recently returned from India a Read More...