Economic growth revised down to 4.1pc

KATHMANDU, FEB 18 -

The government has slashed the economic growth forecast by one percentage point for this fiscal year amid disappointing government expenditure and slowdown in economic activities.

The target has been revised down to 4.1 percent from 5.1 percent, as per the mid-term review of the budget for this fiscal year.

The International Monetary Fund recently predicted that Nepal economic growth would remain well below 3.8 percent due to low capital expenditure, bad weather and slowing Indian economy.

The Finance ministry said capital expenditure remained just around 15 percent (Rs 7.66 billion), which resulted in the piling up of resources worth around Rs 50 billion in its treasury.

Revenue collection in the first six months stood at Rs 134.56 billion, 2.04 percent more than the target. During the review period, inflation remained at 10.7 percent.

The government expanded Kathmandu valley roads by 103 km, against the planned expansion of 187 km, in the six months.

Over the review period, roads in Kathmandu district were expanded by 84.69km, while those in Lalitpur and Bhaktapur districts were expanded by 15.60 km and 2.50 km, respectively.

Finance Minister Barsa Man Pun said the government has taken ahead the valley road expansion drive as a campaign. “The government also provided adequate resources for the purpose,” he said.

Mid-Hill Highway, one of the national pride projects, saw its track opened by an additional 13 km, 4 km gravelling, and completion four brides in the western section during the review period. In its eastern part, work is underway on 23 bridges, while 18 km road has been blacktopped.

Another national pride project — Kathmandu-Terai Fast Track — witnessed an additional 6km track opening. With this, 70 km of the 76 km track of the highway has been opened.

As far as the postal road in Tarai is concerned, construction work has begun on 608km section and 62 bridges along road in the first phase.

For railway development, the government distributed compensation for land acquired on the 60km section of the Jayanagar-Janakpur-Bardibas section of the proposed railway.

The ministry said about 60 percent work on intake and embankment of the Ranijamara Kulriya Irrigation Project has been completed.

In Sikta Irrigation Project, construction work on the 15km-35km section of the cannel has intensified.

“More than 60 percent of the work on the section has been completed,” Pun said.

According to the mid-term budget review, 81 percent work on the 30MW Chameliya Hydropower Project has been completed as of the first six months.

The Finance Minister said load-shedding has been limited to 12 hours a day by importing power from India and producing 38MW from thermal and diesel plants, besides domestic ydropower production.

“During the review period, the private sector added 30MW power,” said Pun.

The minister also informed that about 40 percent of civil work has been completed on the 456MW Upper Tamakoshi Hydropower Project.

As far as the social sector is concerned, a total of 129,534 women were provided free-of-cost maternity services and 2,990 women facing uterus prolapse underwent free surgery.

A total of 177 former Kamaiyas have been provided Rs 150,000 each to purchase land.

In order to increase people’s access to government services, 26 new unified service centres and three Area Administration Offices have been added, according the budget review.

“In the first six months, 478 sub-health posts were upgraded to health posts,” said the finance minister.

Source: The Kathmandu Post