Foreign Reserve up by (+17.8) per cent while govt revenue down by (-14.9) per cent

By TRN Online, Kathmandu, April 11: The Current-Macroeconomic and Financial Situation data published by Nepal Rastra Bank (NRB) showed that foreign reserve by 17.8 per cent while government revenue slid down by (-14.9) per cent. 

Income side of fiscal position still tight 

 The NRB’s data showed that the government revenue slid by (-14.9) per cent while the expenditure rose up by 15.4 in the fiscal year (FY) 2022/23 in comparison to the same period of the previous FY.

The data showed that during the past eight months of the current FY, total expenditure increased to Rs 779.23 billion in comparison to Rs 675.30 billion recorded in the same period of previous FY.

In the current FY, recurrent expenditure increased by 13.1 per cent, capital expenditure increased by 9.2 per cent and financial expenditure increased by 44.2 per cent in past eight months comparison to the same period of the previous FY.

Whereas, total revenue slid down by (-14.9) per cent. In this income side, tax revenue slid down by (-16.2 per cent) to Rs 526.47 billion in first eight months of the FY 2022/23 which was recorded Rs 627.90 billion in the same period of the previous FY and non-tax revenue slid down by (-0.9 per cent) in the past eight months to Rs 56.30 billion which was recorded Rs 56.79 billion in the same period of the previous FY.

Stress on external sector Eliminating  

Current account deficit narrowed down

The data showed that the current account deficit of Rs 44.31 billion in the past eight months compared to Rs 460.72 billion recorded in the same period of the previous FY.

Surplus amount recorded in the Balance of payment 

Balance of Payments (BOP) remained at a surplus of Rs 148.11 billion in the review period compared to a deficit of Rs. 258.64 billion in the same period of the previous year.

Foreign exchange reserve Up 

Of the total foreign exchange reserves, reserves held by the central bank increased 17.8 per cent to Rs 1244.94 billion in mid-March 2023 from Rs 1056.39 billion in mid-July 2022.     

Meanwhile, the reserves held by banks and financial institutions decreased 2 per cent to Rs 156.27 billion in mid-March 2023.

Remittance inflow Went Up 

Remittance inflow increased by 25.3 per cent in the past eight months of the current FY.

Its inflows reached Rs 794.32 billion in the current FY up from Rs 633.9 billion recorded in the same period of the previous FY.

Upward Pressure of Inflation still persists  

The overall inflation recorded 7.44 per cent in mid Feb/March 2023 which slightly higher than 7.14 per cent recorded in same period of the previous FY. 

The data showed that though the CPI inflation of food and beverage mild down to 5.64 per cent in the mid- Feb/March 2023 which was recorded 7.51 per cent in mid-Feb/March 2022, the CPI inflation of non-food and service gone up to 8.87 per cent in mid-Feb/March 2023 from 6.84 per cent recorded on mid-Feb/March 2022.