The approach paper for the 13th development plan prepared by the National Planning Commission (NPC) envisages, among other things, upgrading Nepal to the status of a developing county from the existing Least Developed Country (LDC) status by 2022, through achievement of annual economic growth of six percent.
However, experts say Nepal has to attain at least 7 percent annual growth to achieve the target. This year the government expects only 3.6 percent growth, owing to low capital spending and the poor performance of the agriculture sector.
To attain a six percent growth rate, the plan has focused on an agricultural growth rate of 4.5 percent per annum till 2015/16. It has also set a target of 6.7 percent growth rate per annum in the non-agricultural sector till 2015/16.
Such growth rates are expected to result in employment growth of 3.2 percent per annum till 2015/16, while bringing down the population living below the poverty line to 18 percent of the total.
Development of physical infrastructure, expansion of social services, enhancement of good governance in the public and other sectors, and inclusive and sustainable development are the other priorities.
Plans to spend a total Rs 1.62 trillion by 2015/16 are incorporated in the paper. Of this, Rs 960.69 billion will be spent to cover recurrent expenses, while Rs 277.94 billion will be allocated for capital spending.
The expenditure targets, according to the plan, will be met through an estimated revenue collection of Rs 1.13 trillion in the three-year period, with the balance to be raised through domestic debt and grants and loans from development partners.
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