 |
Kathmandu Thursday October 04, 2001 Ashwin 18, 2058.
|
Government expenditure rises, trade deficit widens
Post Report
KATHMANDU, Oct 3 - During the first month of
the current fiscal year, government expenditure went up by 80.3 per cent in contrast to a
decline of 7.5 per cent during the first month of the previous fiscal year.
Of the total government expenditure, regular
expense rose by 116.6 per cent and development expense by 241.8 and freeze expenditure by
58.6 per cent during the period, according to a press communiqué released by the Nepal
Rastra Bank (NRB) today.
Pay hike of government employees in previous
fiscal year, payment of overdue, pension and medical care allowance and a substantial
increase in internal security mainly pushed the government expense up.
Similarly, revenue collection also increased
by 57.9 per cent during the review period compared to a decline of 24.1 per cent during
the corresponding period last year. But due to low mobilization 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 3.1 per cent during the month in contrast to an
increment of 1.0 per cent during the same month last year. According to the release, of
the over all price index, price of food and beverages rose by 1.7 per cent compared to a
decline of 4.6 per cent the previous year.
However, the price of non-food and services
group went up by 4.8 per cent during the first month of the fiscal year 2001/02 as against
the growth of 8.2 per cent in the same month the previous fiscal year, states the release.
During the review period, exports registered
a decelerated growth of 15.2 per cent to Rs 4494.3 million compared to a growth of 25.9
per cent during the corresponding period of the previous financial year.
The growth of exports to India decreased to
49.5 per cent from 95.3 per cent in the previous year whereas the exports to third
countries plunged by 13.6 per cent as against a decline of 2.9 per cent during the first
month of the last fiscal year.
However, the export of jewelry, woollen
carpet and tanned skin to third countries increased, but the export of pulses, pashmina
and ready-made garments plunged significantly during the review period.
There has been a marginal increase of 3.3 per
cent in import during the first month of the current fiscal year amounting to Rs 8413.5
million compared to a rise of 12.2 per cent during the same period of the preceding fiscal
year.
The imports of vehicles and parts, chemical
fertilizers, petroleum products, M S billet, M S wire, rod, and pesticides from India and
petroleum products betel nut, computer parts, camera, black pepper, PVC compound, steel
sheet, medical equipment, paper and silver from the third countries went up in comparison
to that of the previous year.
Trade deficit decreased by 7.6 per cent and
remained at Rs 3919.2 million compared to a growth of 1.9 per cent in the same period of
the previous year due to higher growth rate of exports than that of imports. The
export/import ratio which was 47.9 per cent last fiscal year improved to 53.4 per cent
during the first month of this fiscal year, states the release.
The balance of payments in the first eleven
months of the previous fiscal year remained favourable by Rs 4279.9 million. In the first
month of this fiscal year, in spite of decline in net services income, current account
deficit plunged by 5.0 per cent, due mainly to decrease in trade deficit and increase in
current transfer receipts compared to the corresponding period of the previous year.
A substantial inflow of official capital net
helped to make the balance of payments positive. The overall balance of payments recorded
a surplus of Rs 1172.8 million. Subsequently, foreign exchange holdings of the banking
system increased by 9.2 per cent to Rs 106046.4 million. Of the total reserve, 75.5 per
cent was accounted for by convertible currencies and the rest by non-convertible currency.
Market capitalization of the companies listed
in the stock exchange decreased to Rs 43.96 billion in mid-August 2001 from Rs 46.35
billion in the previous month. Similarly, Nepal Stock Exchange (NEPSE) share price index
decreased from 348.4 in the previous month to 322.1 in mid-August 2001.
Other Story
|
