Economic growth rate to remain at 6 per cent
KATHMANDU: The Finance Ministry has predicted an economic growth rate of 6 per cent this fiscal year. As per the bi-annual evaluation of the budget for the current fiscal, the Ministry says that negative impact of floods to seasonal crops is showing an economic growth rate of lesser than the target. The economic growth rate for the year was targeted to be 7.2 per cent.
Likewise, inflation during the review period remained at 3.5 per cent while it is estimated to climb to 6 per cent at the end of the current fiscal year. Furthermore, inflow of remittance decreased by 0.5 per cent.
During the period, export of goods increased by 13.4 per cent and import by 15 per cent leading to an increment in the trade deficit by 15.1 per cent to reach 493.02 billion rupees. Foreign exchange reserve also decreased by 1.1 per cent while government expenditure increased by 45.5 per cent. However, revenue collection increased by 20.73 per cent, leading to a budget deficit based on cash flow to Rs. 35.47 billion.
The expenditure during the period was only 31.23 per cent of the total budget, including 41.20 current, 14.35 capital and 14.41 per cent in fiscal measures.