Nepal | July 09, 2020

Productive sector to need Rs 78.29bn in fiscal 2015-16

Himalayan News Service
Share Now:

requiredresourcesjun24KATHMANDU: The government needs to spend Rs 78.29 billion next fiscal for recovery and reconstruction activities in the productive sector — agriculture, irrigation, commerce, industry, tourism and financial sectors. The sector has faced total damage and losses worth Rs 178.12 billion or 25 per cent of the total effects.

The Post Disaster Needs Assessment (PDNA) report has made a break-down of the resources required for the recovery and reconstruction works of the productive sector for the next three fiscals, which has a larger contribution in employment, economic growth and capital formation. The report states that the productive sector needs Rs 115.62 billion for recovery and reconstruction works, of which Rs 78.29 billion needs to be utilised next fiscal.

The PDNA has also stressed on ensuring the availability of finance through banking and non-banking institutions, including co-operatives for the recovery of the private sector as it has witnessed huge damage and losses as compared to the public sector. The private sector’s loss stands at Rs 158.079 billion, according to PDNA.

The report has recommended that a large chunk of the budget be spent in the tourism sector next fiscal, which has been severely affected. As per PDNA, the government should spend Rs 29.44 billion in recovery and reconstruction of the tourism sector. PDNA has recommended expenditure of Rs 38.71 billion in the sector in the next two fiscals. The total effect in tourism sector stands at Rs 81.24 billion.

In the next fiscal, tourism sector may get recovery budget of Rs 10.87 billion and reconstruction budget worth Rs 18.57 billion as per recommendations of PDNA.

The report states that the financial sector could receive reconstruction and recovery budget worth Rs 21.97 billion next fiscal, but the recommendation for the same is of Rs 33.47 billion. Recovery has been indicated to be the major challenge for financial sector stability and an estimated Rs 26.81 billion is required within next three fiscals.

READ ALSO:

A higher amount of resources could be required for financial stability as banks and financial institutions could suffer from higher amount of loan loss due to damages and loss of other businesses. Moreover, line of credit facility worth Rs 3.20 billion may have to be extended to insurance companies next fiscal.

Likewise, agriculture sector, which engages 60 per cent of the working group population, needs Rs 10.77 billion next fiscal for recovery and reconstruction works. A total of Rs 3.57 billion is estimated to be required for the recovery of agriculture sector next fiscal, according to PDNA. Under the reconstruction need, the PDNA has stressed on crucial issues like reconstructing agriculture infrastructure and restocking livestock. “The loss of food and livestock, which were major sources of income of the rural households will potentially cause a severe income shock,” said the PDNA report.

Similarly, as per PDNA, the commerce and industry sectors need to spend Rs 11.55 billion and Rs 4.44 billion, respectively, in recovery and reconstruction activities. More importantly, total working capital required for enterprises (related to trade and commerce) destroyed in the earthquake stands at Rs 2.22 billion for next two fiscal. Likewise, working capital of Rs 2.71 billion has been proposed for affected industries for next two fiscals.

Apart from this, irrigation sector needs to spend Rs 383 million in recovery of irrigation schemes and office buildings of irrigation projects in the next fiscal year.


A version of this article appears in print on June 24, 2015 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Chelsea close in on Champions League spot with 3-2 win at Palace

LONDON: Chelsea kept up their push for a top-four finish in the Premier League and Champions League football next season with a 3-2 victory at London rivals Crystal Palace on Tuesday thanks to goals from Olivier Giroud, Christian Pulisic and Tammy Abraham. The visitors took a two-goal lead i Read More...

Singh Durbar

New nuke law stipulates plan for disaster management

KATHMANDU, JULY 7 The Radioactive Materials Use and Regulation Act, 2020, recently authenticated by President Bidhya Devi Bhandari, requires the Government of Nepal to develop and implement a disaster preparedness and management plan at the national level to prevent and manage any disastrous impa Read More...

Furdiki Sherpa and Nima Doma Sherpa

Hit hard by pandemic, Sherpa widows face uphill battle

KATHMANDU, JULY 7 After conquering Mount Everest and shattering taboos, two Nepali Sherpa widows face a new challenge, the coronavirus pandemic, which has shut down all climbing and trekking activities rendering them jobless. Nima Doma Sherpa and Furdiki Sherpa made global headlines when t Read More...

Jewellery store burglary racket busted

KATHMANDU, JULY 7 Police have busted a racket of thieves, who were allegedly involved in burgling jewellery stores in Kathmandu valley, under the guise of scrap collectors. Those taken into custody for legal action have been identified as Ganga Bahadur Tamang aka Sumit, 37, and Junga Bahadur M Read More...

Isolation wards empty as COVID-19 cases stay put in quarantine

DHANGADI, JULY 7 Isolation wards that were set up to keep COVID-19 infected patients are mostly empty as most of the infected continue to stay in quarantine shelters in Sudurpaschim Province. As per data with Sudurpaschim Province Social Development Ministry, as of now, the total number of COV Read More...

Irrigation project elates farmers

NEPALGUNJ, JULY 7 Farmers in Banke were elated after Sikta Irrigation Project released water in the project’s western and eastern canals keeping in view the paddy plantation time this year. Man Bahadur Magar of Kamdi, Duduwa Rural Municipality, said he could plant paddy on time this year aft Read More...

Financial institutions, banks urged not to pile pressure for loan payment

POKHARA, JULY 7 Western Regional Hotel Association, Pokhara, has urged banks and financial institutions not to pile pressure for loan payment. Banks and financial institutions are pressing hotels and the tourism sector to pay back the loan and interest, on the ground that the fiscal year was d Read More...

Parliamentary committee probing irregularities

DHANGADI, JULY 7 The federal Parliament’s Agriculture, Cooperatives and Natural Resources Committee has started investigating alleged irregularities carried out in the name of scientific forest management. A team of the panel comprising Shanta Chaudhary, Satya Narayan Sharma Khanal and Raj B Read More...