KATHMANDU, Mar 14: Due to the lockdown, loss of jobs and the ongoing pandemic, the saving capacity of Nepalis has decreased.
According to the data published by the Central Bureau of Statistics (CBS), on average, a Nepali was able to save less than Rs 9 out of Rs 100 in fiscal year 2019-2020.
“The study suggests that a Nepali spends 91.1 percent of his income,” said CBS Director Ganesh Prasad Acharya.
Nepalis spending 13% of daily income for a food-plate
In fiscal year 2018/19, the consumption expenditure of Nepalis was Rs 84.3 on average. This expenditure increased by 6.8 percent in fiscal year 2019/2020 which indicates a decrease in the saving capacity of Nepalis.
Former finance secretary Shant Raj Subedi maintained that the lack of income sources during the Covid-19 pandemic resulted in a decline in the saving capacity. “We have to consume even if we don’t have an income source,” he added.
“Decrease in the saving capacity is directly proportional to investment and lack of investment creates unemployment which results in decreases in national income,” Subedi said.
Likewise, the Per Capita Income (PCI) of Nepal has also decreased. According to the latest study, Nepal’s PCI dropped to USD 1,148 in fiscal year 2019/2020 from USD 1,171 in fiscal year 2018/2019.
However, Nepal has witnessed a growth in its Gross Domestic Product (GDP). The GDP of Nepal was Rs 3.943 trillion. With the change in the base of GDP calculation, GDP of Nepal has increased by 14 percent, according to the CBS. GDP of Nepal stood at Rs 1.559 trillion in fiscal year 2010/2011.
