By Ranju Kafle
Kathmandu, May 28: The government has projected a 7 per cent growth for the next fiscal year Unveiling the ‘Economic Survey’ for the year 2019/20 in both the Houses of Federal Parliament on Monday, Minister for Finance Dr. Yuba Raj Khatiwada projected the growth rate for the next year. Likewise, he said that inflation would be 4.2 per cent.
He claimed that the fiscal sector showed improvement over the months.
Finance Minister Dr. Khatiwada said that the extended access to insurance covering 18 per cent people across the country, improvement in the stock exchange market and growing access to commercial banks in local bodies were the positive signs of the national economy. The survey report says that the number of commercial banks and financial institutions reached 4,701 in the country.
Presenting the report, Dr Khatiwada said that in the first eight months of the current fiscal year, the total export increased by 14.6 per cent and reached Rs.61 billion whereas the import increased by 23.8 per cent and reached Rs.949 billion.
The survey report further showed that the economy was facing a trade deficit of Rs. 888 billion during the period.
The Finance Minister said that BOP deficit reached Rs.59 billion while the current accounts had a deficit of Rs.191 billion.
Likewise, remittance flow has increased by 23.4 per cent and reached Rs. 582 billion in the first eight months, showing hopes for positive changes. He said that the number of migrant Nepali workers decreased by 35.9 per cent during the period.
Dr. Khatiwada said that the government was able to receive Rs. 11 billion’s investment commitment for 218 projects of different industrial sectors, which could create 7953 plus jobs in the country.
The Minister in his survey report stated that 77.8 per cent population had access to electricity, 1142 MW power was produced and 18 per cent population were using renewable energy.
The government linked each district headquarters except for Dunai of Humla with roads. According to the Minister, tourist flow was highly exciting.
The Minister informed the lawmakers that among the national pride projects, construction of the Gautam Buddha International Airport in Bhairahawa reached the completion phase and would come into operation soon. The construction on Pokhara regional airport in Pokhara and the Mid-hill highway and others were going rapidly.
He said that the reconstruction of the earthquake hit settlements and infrastructure was going on smmothly.
According to him, 605,000 private houses were constructed, 262 public buildings, 4201 schools, 221 heritage sites and 124 buildings of security forces were constructed in the first eight months of the current fiscal year.
The Minister said that the saving habits of the people had increased and per capita income was in a continuous raising trend which could contribute to the national capital formation.The Finance Minister said that the government was able to manage Rs.1700 billion foreign aid commitment during the time.