Economic Survey: Govt projects 3.9 percent economic growth for FY 2023/24

Published On: May 26, 2024 06:57 PM NPT By: Republica | @RepublicaNepal

KATHMANDU, May 26: The government has forecast a 3.9 percent economic growth rate for the current fiscal year 2023/24.

Amidst disruptions from the main opposition party, Nepali Congress, Finance Minister Barsha Man Pun presented the Economic Survey for the fiscal year 2023/24 AD and the Annual Review of Public Enterprise 2081 BS, in a parliamentary session.

Minister Pun said that the total investment is expected to rise by 3.8 percent, with Per Capita Income (PCI) projected to reach $1,456. Inflation stood at 6.08 percent as of mid-March in the current fiscal year, and revenue collection increased by 6.9 percent in the same period.

"The survey reflects and analyzes the overall economic, social, sector-wise development, and governance at federal, provincial, and local levels during the last fiscal year and up to eight months of the current fiscal year," said Pun.

Despite contractions in the productive, industrial, and construction sectors, the growth in agriculture and services sectors is expected to drive the 3.9 percent economic expansion. The economic growth rate in Gandaki, Bagmati, and Lumbini provinces is anticipated to exceed the national average. The total investment is expected to increase by 2.8 percent, reaching Rs 1.741 trillion this fiscal year.

Minister Pun said that the average consumer price inflation was 6.08 percent until Fhagun (March 13, 2024) of the current fiscal year, with revenue collection from the federal government increasing by 9.7 percent, reaching Rs 639.05 billion. Federal expenditure increased by 2.9 percent to Rs 801.58 billion during the same period.

"The total public debt reached Rs 2.38826 trillion until mid-March, with domestic debt at 49.6 percent and external debt at 50.4 percent. Provincial and local levels received Rs 517.62 billion in the fiscal year 2022/23 AD, including Rs 397.26 billion from fiscal transfers from the federal level and Rs 120.26 billion through revenue allocation," said Minister Pun.

He said that the financial sector is gradually improving, with adequate liquidity in the banking system and decreasing loan and deposit interest rates. Likewise, loan disbursement to the private sector as of mid-March of the current fiscal year increased by 5.6 percent.

With the expansion of the banking network and promotion of financial literacy, the population per bank branch has reached 2,515, and electronic transactions have increased.