June 10, 2018 09:01 PM NPT
KATHMANDU, June 10: The budget deficit of the Government has increased to Rs. 138.23 billion in ten months of 2017/18 from a deficit of Rs. 0.51 billion in the corresponding period of the previous year.
According to the Current Macroeconomic and Financial Situation of Nepal based on Ten Months' Data of 2017/18 released by Nepal Rastra Bank today, the current account deficit widened further to Rs. 191.02 billion in the review period from a deficit of Rs. 7.57 billion in the same period of the previous year. The elevated level of imports widened the current account deficits. As a result, the overall Balance of Payment (BOP) turned into a deficit of Rs. 18.93 billion in contrast to a surplus of Rs. 53.81 billion in the same period of the previous year.
Likewise, in the review period, the flow of foreign direct investment (FDI) amounted to Rs. 15.51 billion compared to Rs. 11.61 billion in the corresponding period of the previous year.
The workers' remittances increased 7 percent to Rs. 606.68 billion in the review period compared to a rise of 5.2 percent in the same period of the previous year. However, net transfer receipts decreased 0.1 percent to Rs. 692.23 billion in the review period. Such receipts had increased 10.3 percent in the same period of the previous year.
Based on approval, the number of Nepalese workers going for foreign employment (except renew entry) fell by 6 percent in the review period. It had decreased 3.9 percent in the same period of the previous year, too.
According to NRB, the overall economic activity is expected to remain on track as reflected in the recent GDP estimates by the Central Bureau of Statistics (CBS) for 2017/18. The estimate of real GDP growth of about 6 percent has been broad-based with slightly lower than expected growth in agriculture on account of widespread flood and inundation in the southern plain at the beginning of the current fiscal year.
The report on economic activities recently released by Nepal Rastra Bank shows a rise in the industrial capacity utilization to 58 percent during six months of 2017/18 from 54.2 percent a year ago. RSS