Govt expenses rise, trade deficit widens

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KATHMANDU, Jan 1 :The budget operation of the government, during the first four months of the fiscal year 2001/02, weakens as the total expenditure registered a growth of 9.0 per cent amounting to Rs 18.76 billion against an increase of 5.4 per cent during same period last year.

Of the total government expenditure, regular expense grew by 6.9 per cent to touch Rs 13.77 billion while cash development expenditure registered an increment of 5.9 per cent to touch Rs 3.50 billion while freeze expenditure surged by 45.8 per cent to Rs 1.48 billion. This is stated in a press communiqué released by the Nepal Rastra Bank (NRB) today.

The late release of government expenditure as a consequence of delay in budget approval coupled with the slackness seen in development activities as a result of disturbed law and order situation is attributed for the slower growth in development expenditure.

Similarly, revenue collection, the major resource to finance the budget, increased by 7.0 per cent to Rs 14.55 billion whereas such growth during the same period last year was 31.3 per cent. The deceleration in revenue collection is attributed to a decline in imports and sluggish industrial production situation.

The decline in foreign cash grants and slowdown in revenue collection resulted in a higher budgetary deficit of Rs 4.20 billion compared to a deficit of Rs 3.61 billion last year. The government, during the period, overdrew Rs 2.67 billion from the central bank to finance the resources gap.

The national Urban Consumer Price Index, on point to point basis, increased by 2.8 per cent which is similar to the growth during the corresponding period last year.

According to the release, of the over all price index, price of food and beverages rose by 4.7 per cent compared to a decline of 3.7 per cent the previous year. Despite a decline in the price of rice and rice products, a sharp rise in the prices of vegetables and fruits sugar and related products, and oil and ghee is attributed to the rise in the prices of food and beverages group.

However, the price of non-food and services group went up by 0.6 per cent during the first four months as against the growth of 10.9 per cent in the same period of the last fiscal year, states the release. The downfall in the housing prices is the main reason behind the nominal price rise in the non-food group.

During the review period, total exports registered a decline of 8.3 per cent to Rs 17.58 billion compared to a growth of 42.3 per cent during the corresponding period of the previous financial year.

The growth of exports to India decelerated to 324.3 per cent from 57.9 per cent in the same period of the previous year. The exports to third countries also plunged by 34.9 per cent as against a growth of 31,6 per cent during the same period of the last fiscal year.

The export of jewelry and tanned skin to the third countries increased during the period, however, a heavy slump in the exports of woolen carpet, garment and pashmina, pulses dragged down the whole export figure.

During the first four months of the current fiscal year, imports registered a decelerated growth of 3.5 per cent to Rs 34.37 billion as against a growth of 12.5 per cent during the same period of the last fiscal year.

The import of animal, cement, electrical equipment, medicine, petroleum products, tobacco, pesticides, tyre, tube and chemical fertilizer from India went up. Similarly petroleum products, agricultural tools, medical equipment, electrical equipment, crude oil, medicine, polythene granules, copper wire and sheet, paper as well as silver from the third countries rose in comparison to that of the previous year.

As a result of increase in imports and decline in exports, trade deficit widened by 2.1 per cent to Rs 16.79 billion whereas such figure had declined by 9.5 per cent during the same period last year. The export/import ratio, which was 53.8 per cent in the previous fiscal year, came down to 51.1 per cent in the review period, states the release.

Based on the available balance of payments statistics for the first two months of the fiscal year, the balance of payments remained favorable by Rs 0.87 billion. During the period, in spite of decline in net service income, current account deficit narrowed down by 3.8 per cent to Rs 2.56 billion due mainly to an increase in net transfer receipts compared to the corresponding period of the previous year. Besides, an inflow of miscellaneous capital items helped the balance of payments to remain positive.

The foreign exchange holdings of the banking system increased by 3.0 per cent to Rs 104.13 billion in mid-November 2001. Of the total reserve, 74.6 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 increased to Rs 42.6 billion in mid-November 2001 from Rs 39.3 billion in the previous month. Similarly, Nepal Stock Exchange (NEPSE) share price index increased from 281.2 in the previous month to 300.2 in mid-November 2001.

DAO denies registering microbus company

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POKHARA, Jan 1:Entrepreneurs say that the District Administration Office (DAO), Kaski has denied registering an organization established to operate non-polluting microbus service in the Pokhara sub-metropolitan City.

A group of entrepreneurs had submitted an application to the DAO on June 17, 2001 to operate microbus service in the sub-metropolitan city from July 16, 2001, but the office denied registering the ad hoc committee of the microbus service.

"We submitted an application to the DAO, but it did not register our company. So we are going to move the court," said Narayan Subedi, secretary of the ad hoc committee.

Chief District Officer (CDO) of Kaski, Tika Ram Aryal said that the office did not register the company though the application was complete due to ongoing dispute among transport entrepreneurs.

"If the court rules me to register the company, it would be more comfortable for me as the bus and taxi transport entrepreneurs are making collective efforts to stop microbus entrepreneurs from entering the city," CDO Aryal said.

Transport entrepreneurs like minibus, taxi and truck are campaigning against the entry of microbus in the city, by forging an alliance through Gandaki Zonal Transporters Coordination Committee.

The Committee encompasses Pokhara Bus Transporters Committee, Prithvi Highway Bus Operators Committee, Taxi Entrepreneurs Committee, Gandaki Truck Operators Committee, Minibus Operators Committee, Begnas Lake Bus Operators Committee and Gandaki Medium Mini Bus Operators Committee.

The Committee is dead against the entry of new operators of microbuses. The Committee has been arguing that new operators should not be allowed at all.

"We are planning to operate micro buses", said Basanta Pradhan, secretary of the Coordination Committee.

There are 69 buses in operation in the city and the Committee is planning to phase out those buses. The Committee has already decided to phase out 23 buses and introduce two microbuses in place of one bus each, according to Pradhan.

Pokhara City Development Committee, Pokhara Sub-metropolitan City, Pokhara Chamber of Commerce and Industry and Lekhnath Chamber of Commerce and Industry are in favour of operating microbuses, so that the environment of the city would not degrade.

Business community worried

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KATHMANDU, Jan 1: Entrepreneurs gathered at a programme at Narayangarh on Tuesday expressed distress over the deteriorating business environment in the country.

According to a press release, they also raised their voices over the unchecked import of foreign commodities, which impacts the small and medium industries of the nation.

Speaking at the inaugural function of the 35th annual general meeting (AGM) of Narayangarh Chamber of Commerce and Industry, Ravi Bhakta Shrestha, President of Federation of Nepalese Chamber of Commerce and Industry (FNCCI), said that it is necessary to gear up the economic development works in the country by controlling corruption, instability and unrest.

MP Rishibabu Pariyar said that without restoring peace, the industrial sector can never prosper, the release quotes him as saying.

Ananda Raj Mulmi, former FNCCI president, Rajendra Kumar Khetan, second vice president 3p and Him Bahadur Piya, mayor of Bharatpur Municipality also spoke.

Election of the new executive committee of the district chamber will be held late on Tuesday, concludes the release.

NTB’s new promotional schemes

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KATHMANDU, Jan 1 : With an aim to creating awareness and promoting Nepal as a tourism destination globally, Nepal Tourism Board (NTB) has begun publicity campaigns in partnership with various national and international organisations.

The Board, formed three years ago at the joint initiatives of the government and the private sector, at its third anniversary today, gave a formal beginning to its new venture. The Board signed two different Memorandum of Understandings (MoUs) with Kantipur Publications and World Wide Fund for nature conservation (WWF) on this regard.

The MoUs were signed by Kailash Sirohiya, Managing Director of Kantipur Publications, Pradeep Raj Pandey, Chief Executive Officer of NTB, and Ukesh Raj Bhuju of WWF on their respective behalf.

Minister for Culture, Tourism and Civil Aviation Bal Bahadur KC said that the government is committed to formulate programmes and policies conducive to the promotion of the tourism industry.

He said that the government has begun preparing a Master Plan for reviving the sliding tourism industry with the technical assistance of World Tourism Organisation (WTO) and the government is contemplating to establish branch offices of the NTB in all the five development regions.

Sirohiya said that the MoU reached between the NTB and the publications is a step aimed at ensuring effective dissemination of information about the tourism sector.

State Minister for Culture, Tourism and Civil Aviation, Sarwadhan Rai, Chairman of the NTB, Birendra Bahadur Deuja, and Vice Chairman of the NTB, Shyam Bahadur Pandey, among others, attended the celebrations.