Ministry hopeful of improving indicators
KATHMANDU:
The Ministry of Finance (MoF) has assured that the macroeconomic indicators have improved in the recent months as the nation has witnessed Balance of Payments (BoP) surplus, brought down the inflation into single digit along with easing liquidity situation.
The liquidity situation that was almost on the verge of crisis is approaching normalcy as the commercial banks’ deposits has surged by Rs 30 billion in the last three months, according to the ministry.
The easing liquidity situation and the steps taken by the annual budget to further alleviate the liquidity in the financial sector can also be reflected by the decline of inter-bank rate to 1,.7 per cent from 10.4 per cent three months ago, the ministry said, adding that the banks and financial institutions have also reduced their demand for repo to increase the flow of liquidity. “Moreover, the actions taken against the banks and financial institutions’ promoters and chief executives that have misappropriated the funds of the depositors has also boosted depositors’ confidence on the system.”
The capital market has also seem to be recovering due to different attempts at improving the overall economic situation. It has also stated that Balance of Payments (BoP) is in surplus of Rs 2 billion by mid-July after two years. The surplus BoP has also brought about the increase in foreign exchange reserves to Rs 272 billion by the first week of the current fiscal year.
The ministry is hopeful that timely budget for this fiscal year will accelerate revenue collection, though it has been seriously doubted. “The budget will also contribute in expanding economic activities and create better investment climate,” it said, adding that donor agencies have also taken the well-timed budget positively.
Review meeting
The Finance Ministry has launched the programmes and projects for the current fiscal year on Wednesday. The finance minister, vice-chairman of National Planning Commission and secretaries of different ministries conducted a review meeting of the budget and its implementation on the occasion. The finance minister Bharat Mohan Adhikary expressed the confidence on effective implementation of budget programmes pointing out the positive impact of on-time budget in improving macroeconomic condition.
Source: THT
The Ministry of Finance (MoF) has assured that the macroeconomic indicators have improved in the recent months as the nation has witnessed Balance of Payments (BoP) surplus, brought down the inflation into single digit along with easing liquidity situation.
The liquidity situation that was almost on the verge of crisis is approaching normalcy as the commercial banks’ deposits has surged by Rs 30 billion in the last three months, according to the ministry.
The easing liquidity situation and the steps taken by the annual budget to further alleviate the liquidity in the financial sector can also be reflected by the decline of inter-bank rate to 1,.7 per cent from 10.4 per cent three months ago, the ministry said, adding that the banks and financial institutions have also reduced their demand for repo to increase the flow of liquidity. “Moreover, the actions taken against the banks and financial institutions’ promoters and chief executives that have misappropriated the funds of the depositors has also boosted depositors’ confidence on the system.”
The capital market has also seem to be recovering due to different attempts at improving the overall economic situation. It has also stated that Balance of Payments (BoP) is in surplus of Rs 2 billion by mid-July after two years. The surplus BoP has also brought about the increase in foreign exchange reserves to Rs 272 billion by the first week of the current fiscal year.
The ministry is hopeful that timely budget for this fiscal year will accelerate revenue collection, though it has been seriously doubted. “The budget will also contribute in expanding economic activities and create better investment climate,” it said, adding that donor agencies have also taken the well-timed budget positively.
Review meeting
The Finance Ministry has launched the programmes and projects for the current fiscal year on Wednesday. The finance minister, vice-chairman of National Planning Commission and secretaries of different ministries conducted a review meeting of the budget and its implementation on the occasion. The finance minister Bharat Mohan Adhikary expressed the confidence on effective implementation of budget programmes pointing out the positive impact of on-time budget in improving macroeconomic condition.
Source: THT
