According to National Development Strategy Paper (NDPS), which the government is presenting as the main development strategy paper in the upcoming Nepal Development Forum (NDF) meeting scheduled for next month in the capital, the government is planning to mobilize foreign aid worth Rs 233 billion for various programs being implemented from coming fiscal year.
Likewise, the strategy paper plans to invest Rs 1151.6 billion from domestic resources for formation of fixed assets. Of this, private sector is expected to invest Rs 324 billion while remaining Rs 827.7 billion is anticipated to come from government´s sources.
Among the sources of funding, the strategy paper aims to mobilize Rs 532.2 billion worth of revenue, Rs 233.3 billion of foreign aid and Rs 70.8 billion worth of internal loans.
Likewise, the strategy paper also aims to achieve agricultural growth of 5.2 percent and non-agricultural growth of 8.8 percent during the period. The average economic growth rate of the last two years was 4.6 percent.
Among sectors for expenditure, education is expected to absorb the biggest chunk of planned expenditure. According to the paper, the government is planing to invest Rs 148 billion in education sector, of which Rs 97 billion will be invested from domestic resources while donors have committed to invest Rs 30 billion, leaving a resources gap of Rs 21 billion.
Likewise, local development is planned to get Rs 115 billion for the three years period. Of the amount, Rs 75 billion is expected to come from government while donors have pledged to invest Rs 19 billion, which will create a budget gap of Rs 21 billion.
The hydropower sector, which is projected to produce 10,000 megawatts in the next ten years, is planned to get Rs 51 billion and the sector is expected to have the largest resources gap of Rs 25 billion for the period.
"As per the initial estimation, the total resources gap is expected to be Rs 115.7 billion and the government is planning to urge donors to raise their commitments to fulfil the gap," said Dr Guna Sharma, vice chairman of National Planning Commission, addressing an interaction program with local stake holders.
Similarly, the development strategy paper has also set a number of ambitious targets for the period, like raising the literacy rate to 95 percent from existing 63 percent; connecting all district headquarters by road network; expanding drinking water to 90 percent of the population and increasing telecom services to 25 people in every 100 people.
prem@myrepublica.com
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