'Global recession hampered national economy'

By Ranju Kafle,Kathmandu, May 29: Finance Minister Dr. Prakash Sharan Mahat has said that the recession witnessed in the world economy had negatively affected national economy on Sunday.

Unveiling two documents -- the economic survey of FY 2022/23 and the annual report of public enterprises -- of the year in the Federal Parliament, Finance Minister Dr. Mahat said that national economy was directly affected by the global recession. He said financial status of the country was not so satisfactory due to the same reason. 

“Due to the effect of the recession, economic growth rate of the country will be limited to 2.16 per cent in current fiscal year,” he said. Revenue collection could not achieve its target, foreign aid could not be gained, overall activities slowed down and price increased. 

The Finance Minister further said that the decrease in demand had also created pressure on resource management. “Though the situation is gradually improving, increase in the price of petroleum products has put pressure on the overall price trajectory,” he added. 

According to the Minister, price of food items and edible goods increased, remittance collection slowed down as the global economy was under pressure in the year of 2022. “Now we are on a positive track,” he added.

He also said that the measures used to improve external sector became effective and the government succeeded in balancing it than it was previously. “BOP is in surplus, tourism rebound and remittance collection has been increased now,” he said. 

The economic survey shows that government's ability to spend in development side had been decreased. “Due to the inability of the government to spend on development, 370 km less roads have been blacktopped in current financial year than the previous year,” read the report. In previous year, 618 km of roads were blacktopped this time whereas only 248 km roads have been blacktopped in the same duration this year.

Data shows that public delivery capacity decreased not only on road blacktopping, but also on several projects of national pride in this duration. 

Economic Survey also shows that the foreign exchange earned from tourism industry had increased by 190 per cent. There was an increment of 47 billion rupees from last year. Despite the increase in foreign exchange earnings, the length of stay of the tourists had decreased. “A tourist stays 13 days on average and spends an average of 40 US dollars per day,” read the report. Such stay duration was 15 days last year. 

Hearing committee formed 

Meanwhile, the House also formed a parliamentary hearing committee on Sunday. Speaker Devraj Ghimire presented the names of the members of the hearing committee in the meeting of the House of Representatives and the House approved it. 

According to the Speaker, ruling Nepali Congress and the main opposition CPN-UML have four members each respectively -- Ramesh Lekhak, Ishwari Devi Neupane, Jeevan Pariyar and Gyanendra Bahadur Karki from NC and Padam Giri, Mahesh Kumar Bartaula, Lilanath Shrestha and Ishwari Gharti of UML are included in the committee. 

Similarly, Janardan Sharma from the Maoist Centre, Dol Prasad Aryal from Rastriya Swatantra Party, Pashupati SJB Rana from Rastriya Prajatantra Party and Prakash Adhikari from Janata Samajwadi Party are the members of the parliamentary hearing committee. Another three members Ramesh Jung Rayamajhi of Nepali Congress, Devendra Dahal of CPN-UML and Jag Prasad Sharma of CPN-Maoist Centre had already been nominated for the committee from the National Assembly to complete 15-member committee.

Joint committee regulations passed 

The Federal Parliament also passed the Joint Meeting and Joint Committee (Operation) Regulations of the Federal Parliament same day.

Legal provision has that the House has to pass Joint Committee (Operation) Regulations after the conclusion of general elections. It was the reason the joint meeting of the Federal Parliament passed the regulation with majority votes n Sunday. 

The provision of 45 days mandate for the hearing had been continued in the regulations though it was highly criticized of being misused. The government under the leadership of KP Sharma Oli had recommended the appointment of 52 officials of the constitutional body twice by amending the Act on the Constitutional Council through an ordinance. 

Due to the dissolution of the House of Representatives, parliamentary hearing committee was nullified and the hearing was not held for 45 days. The petition regarding the constitutional appointment without a parliamentary hearing is still pending in the Supreme Court.