Economy to grow by 4.6%

By A Staff Reporter,Kathmandu, May 30: Deputy Prime Minister and Minister for Finance Bishnu Prasad Paudel presented the Economic Survey for the Fiscal year 2024/25 at the House of Representatives of the Federal Parliament on Thursday. 

He had presented the annual economic report before the estimates of income and expenditure for the next Fiscal Year 2025/26. 

"This survey highlights the state of national development during the first eight months of the current fiscal year, as well as that of the previous fiscal year," he said while informing the House that the economic growth for this year would stand at 4.61 per cent. 

With this growth, the size of Nepal’s economy is estimated to reach Rs. 6.107 trillion in the current fiscal year. 

During this period, the agricultural sector is projected to contribute 25.16 per cent to the Gross Domestic Product (GDP), the industrial sector 12.83 per cent, and the services sector 62.01 per cent. 

Likewise, the per capita gross national income has increased to USD 1,517. The average consumer inflation rate has remained at 4.72 per cent.

At the provincial level, Karnali, Lumbini, Gandaki and Bagmati are expected to exceed the national average growth rate of 4.61 per cent. 

According to the Economic Survey report, by the end of Falgun (mid-March) in the current fiscal year, federal expenditure had increased by 4.7 per cent and federal revenue by 12.6 per cent. 

There has been a notable rise in foreign aid commitments. During this period, the federal government's fiscal deficit stood at Rs. 16.19 billion, compared to Rs. 70.36 billion in the same period of the previous fiscal year. 

By mid-March, Nepal’s outstanding public debt had reached Rs. 2.676 trillion, equivalent to 43.8 per cent of the GDP.

Similarly, by mid-March, all local levels have at least one bank branch. On average, one branch of a bank or financial institution now serves 2,527 people. 

During the same period of this year, remittance inflows grew by 9.4 per cent, reaching Rs. 1.051 trillion. 

Both the current account and balance of payments remained in surplus. Foreign exchange reserves are at an all-time high, sufficient to cover 14.3 months of goods and services imports. Investment approvals totalling Rs. 4.766 trillion have been granted by the Department of Industry and the Investment Board Nepal.

Export and import of merchandise increased by 11.2 per cent and 57.2 per cent during the period compared to the corresponding period of the last year 2023/24, respectively. 

DPM Paudel informed that the access to electricity, including alternative energy sources, has reached 99 per cent of the population. The total installed electricity generation capacity has reached 3,602 megawatts. 

The length of the road network—comprising both strategic roads built by the federal government and local roads—has reached 36,132 kilometres. Internet penetration now stands at 144.23 per cent, while 72 per cent of households have access to digital television.

Likewise, the Human Development Index (HDI) has risen to 0.622. 

During the same period, access to basic drinking water services reached 96.85 per cent of the population. The number of beneficiaries receiving social security allowances stood at 3.70 million.