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Kathmandu Friday November 02, 2001 Kartik 17, 2058.
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Trade deficit narrows; export, import dip
Post Report
KATHMANDU, Nov 1 - During the first two months of the fiscal
year 2001/02, government expenditure registered a slower growth of 9.7 per cent amounting
to Rs 6253.5 million in contrast to an increase of 26 per cent during the first two months
of the previous fiscal year.
Of the total government expenditure, regular expense declined
by 4.3 per cent to Rs 3662.4 million and development expense by 11 per cent to Rs 76.9
million and freeze expenditure by 80.1 per cent to Rs 1829.2 during the period, according
to a press communiqué released by the Nepal Rastra Bank (NRB) today.
Despite a decline in both regular and development
expenditure, the total government expenditure increased mainly due to a sharp rise in the
freeze expenditure. In the previous year, Dashain expenses provided to the government
employees during this period had pushed the regular expenditure up whereas such expense
not being disbursed during the review period this fiscal year led to the decline of the
regular expense compared to the previous year.
Late release of development expenditure due to delay in
budget approval contributed to the decline in development expense during the review
period.
Similarly, revenue collection also decreased by 1.1 per cent
to Rs 6156.8 million in contrast to a growth of 26.9 per cent during the same period last
year. But due to low mobilisation of resources, a budget deficit of Rs 12 million was
incurred during the first month of the current fiscal year.
The national Urban Consumer Price Index, on point to point
basis, increased by 4 per cent during the period in contrast to an increment of 1 per cent
during the corresponding period last year. According to the release, of the over all price
index, price of food and beverages rose by 4.3 per cent compared to a decline of 4.4 per
cent the previous year.
However, the price of non-food and services group went up by
4.7 per cent during the first two months of the fiscal year 2001/02 as against the growth
of 8.2 per cent in the same months the previous fiscal year, states the release.
During the review period, exports registered a decline of 5.1
per cent to Rs 8558 million compared to a growth of 38 per cent during the corresponding
period of the previous financial year.
The growth of exports to India decelerated to 24.9 per cent
from 73.6 per cent in the same period previous year whereas the exports to third countries
plunged by 29.1 per cent as against a growth of 18.2 per cent during the first two months
of the last fiscal year.
However, the export of jewellery, woollen carpet and tanned
skin to third countries increased, but the export of pulses, pashmina and ready-made
garments and woollen carpet and tanned skin plunged significantly during the review
period.
During the first two months of the current fiscal year,
imports dipped by 5 per cent to Rs 16690.7 million as against a growth of 6.6 per cent
during the same period last fiscal year.
The import of cement, electrical equipment, medicine,
chemical fertilisers, petroleum products, M S billet, M S wire, rod, and pesticides from
India and petroleum products betel nut, medical equipment, electrical equipment, telecom
equipment, medicine, polythene granules, copper wire and sheet, paper and silver from the
third countries went up in comparison to that of the previous year.
In spite of a decline in both export and import by a similar
rate, trade deficit narrowed down by 4.8 per cent to Rs 8132.7 million owing to the larger
base of imports than that of exports. In the previous year, trade deficit had gone down by
14.1 per cent. The export/import ratio which was 51.4 per cent in the previous fiscal
year, remained similar at 51.3 per cent during the first two months of the current fiscal
year, states the release.
Based on the available balance of payments statistics for the
preceding year 2000/2001, the balance of payments remained favourable by Rs 5762.8
million. In the first two months of this fiscal year, in spite of decline in net services
income, current account deficit plunged by 20.2 per cent to Rs 7154.9 due mainly to
decrease in trade deficit and increase in current transfer receipts compared to the
corresponding period of the previous year.
However, a substantial inflow of official capital net and
miscellaneous capital helped to make the balance of payments positive. The overall balance
of payments recorded a surplus of Rs 373.8 million. Subsequently, foreign exchange
holdings of the banking system increased by 8.4 per cent to Rs 105185.6 million in
mid-September 2001. Of the total reserve, 76.1 per cent was accounted for by convertible
currencies and the rest by non-convertible currency.
Market capitalisation of the companies listed in the stock
exchange decreased to Rs 37.05 billion in mid-September 2001 from Rs 43.96 billion in the
previous month. Similarly, Nepal Stock Exchange (NEPSE) share price index decreased from
322.15 in the previous month to 265.22 in mid-September 2001.
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