Government fails short to meet growth rate
KATHMANDU: Country’s economic growth rate in the current fiscal year was limited to 3.9 per cent against the government target of five percent growth rate, according to an economic survey released by the government based on economic activities and statistics of the first eight months of the current fiscal year.
International Monetary Fund had estimated the economic growth rate of around 4.5 per cent.
According to the Economic Survey 2011/012, country’s overall economic indexes remained positive, thanks to commitment to foreign assistance, growth in foreign investments, development in socio-economic sectors and priority in development work.
Similarly, energy crisis, sluggishness in bank loan disbursement, political transition have adversely affected industrial production and production costs leading to deterioration of overall productivity of the country.
However, gross domestic production (GDP) is expected to reach Rs. 1558 billion with 13.8 per cent increase against the last fiscal year.
Similarly, agriculture sector’s GDP growth rate is expected to rise by 4.93 per cent and crop production also is expected to go up by 9.9 per cent in the current fiscal compared to the last fiscal year.
Similarly, tourism arrival increased by 22.1 percent and contributed 1.8 per cent in GDP.According to the survey, 1,987 kilometers transmission line was constructed and 15km road was blacktopped and 185 km road was constructed during the review period.
The broad money supply increased by 12.2 per cent due to heavy rise in total foreign assets of the banking sector that has increased by Rs. 79.9 billion. RSS