NRB MACRO-ECONOMIC report : Revenue generation satisfactory
Kathmandu, October 11:
Revenue mobilisation during the first month of current fiscal year 2007-08 has been satisfactory, as it grew significantly by 41.2 per cent to Rs 7.13 billion in comparison to the corresponding period last year. The revenue generation had gone up by 11.3 per cent during the same period last year.
High rate of growth in VAT and some non-tax revenue has contributed to such a high acceleration in revenue mobilisation, according to the macroeconomic report published by Nepal Rastra Bank (NRB).
In the review period revenue from VAT and excise duty recorded a higher growth, compared to that of the corresponding period of the previous year. However, customs revenue has declined in the review period, the revenue from income tax witnessed a decelerated growth.
In the first month of 2007-08, total government spending increased by 25.3 per cent to Rs 3.64 billion in contrast to a decline of 17.3 per cent in the corresponding period of the previous year. The increase was due to a rise in recurrent as well as freeze expenditure. The recurrent expenditure rose by 63.8 per cent to Rs 1.24 billion. In the corresponding month of the previous year, recurrent expenditure had increased by 33.9 per cent.
The increase in the salary of civil servants and the compensation to conflict-hit accounted for such a high growth in recurrent expenditure.
During the review period, the government received foreign cash loans of Rs 127.70 million and foreign cash grants of Rs 359.3 million. It had received foreign cash loans of Rs 99.6 million and foreign cash grants of Rs 605.2 million in the corresponding period of the previous year.
In the foreign trade front, exports rose by 10 per cent in contrast to a decline of 2.6 per cent in the corresponding period. Out of the total exports, export to India went up by 8.3 per cent, while the exports to other countries soared by 13.3 per cent.
The rise in the exports to India was attributed to the upsurge in exports of zinc sheet, chemicals, jute goods, MS pipe and polyester yarn. Similarly, exports to other countries took an upward trend owing to growth in exports of pulses, silverware and jewellery, packing materials of paper and buttons.
Total imports also increased by 13.8 per cent comp-ared to a growth of 7.1 per cent in the corresponding period last year. While imports from India went up by 14.5 per cent, imports from other countries rose by 12.6 per cent in comparison to growth of just 0.2 per cent last year.
A rise in the import of petroleum products, MS billet, vehicles and spare parts, cold rolled sheet among others, from India and gold, crude soybean oil, telecommunication, transport equipment and parts and polythene granules, among others, from other countries led to a rise in total imports during the review period in comparison to last year.