Economic Survey for FY 2023/24 tabled

Kathmandu- Finance Minister Barsha Man Pun has tabled the Economic Survey of Fiscal Year 2023/24 in the meeting of the House of Representatives (HoR) today. He presented the Economic Survey after Speaker Devraj Ghimire granted him permission for the same amidst the protest and sloganeering by the main opposition party, the Nepali Congress.

“The overall economic, social, sector-wise development and good governance of the federal, provincial and local levels during the entire period of the last fiscal year and up to eight months of the current FY has been reflected and analyzed,” he said.

Noting that the country’s economic and social indicators have gradually improved, Finance Minister Pun said it is estimated the nation’s economy will expand by 3.9 per cent owing to the growth in the agriculture and service sectors despite the contraction in the productive sector and the production in the industry and construction sectors. He said it is estimated that province-wise, the economic growth rate of Gandaki, Bagmati and Lumbini is estimated to remain above the national average and the total investment is likely to increase by 2.8 per cent and reach Rs 1741 billion and 480 million in the current fiscal year.

“It is estimated that the per capita income will reach 1,456 US dollars. The average consumer price inflation is 6.08 per cent until Phagun (March 13, 2024) of the current fiscal year. There is gradual improvement in the revenue mobilization,” he added. Informing the House that the revenue collection of the federal government until the month of Phagun of the current FY has increased by 9.7 per cent and reached Rs 639 billion and 50 million, Finance Minister Pun said the federal expenditure increased by 2.9 per cent to reach Rs 801 billion and 580 million during this period.

“The total public debt has reached Rs 2388 billion and 260 million until Phagun, 2080 BS. Of the total debt, domestic debt is 49.6 per cent and external debt 50.4 per cent. In the FY 2079/80 BS (2022/23), the provincial and local levels received Rs 517 billion and 620 million, including Rs 397 billion and 260 million through the fiscal transfer from the federal level and Rs 120 billion and 260 million through revenue allocation,” Minister Pun further added.

Reiterating that the fiscal sector is gradually improving, he said there is adequate liquidity in the banking system and the interest rate of loans and deposits is decreasing. He informed the parliament that the loan disbursement towards the private sector as of Phagun of the current FY has increased by 5.6 per cent. The Finance Minister said the per bank branch population has reached 2,515 with the expansion of the network of banks and financial institutions, of the transactions carried out through electronic means and the promotion of financial literacy.