Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel said that the country’s economy is under pressure as economic growth target of 8 percent set in the budget for the current fiscal year will not be met.
Finance Minister Paudel said this while submitting the half-yearly review of the current fiscal year’s budget to the House of Representatives on Sunday.
He said that although there has been some improvement in the tourism sector, the manufacturing industry is not able to run at full capacity. “Therefore, the target of economic growth of 8 percent in the current fiscal year will not be achieved,” said Paudel. He further said that the economic growth target of the government will not be achieved as more pressure has been added to the government due to current and long-term obligations.
Paudel also mentioned that the country’s economy is under extreme pressure due to the impact of import regulation and the slowdown in supply resulting in below par revenue collection. Finance Minister Paudel said that even the amount allocated as compulsory obligation by the revenue system is insufficient.
Finance Minister Paudel mentioned that the tight policy seen in the world economy has added a challenge to Nepal’s economic policy. He noted that the rice production has only increased slightly compared to last year.
Finance Minister Paudel said that while the target was to keep the price increase within the limit of 7 percent in the budget, it reached 7.26 percent.
