Government Projects 6 Percent Economic Growth and 5.5 Percent Inflation for Fiscal Year 2081/82
May 29, 2024 | Investopaper
The government has announced projections for the upcoming fiscal year 2081/82, forecasting an economic growth rate of 6 percent and an inflation rate of 5.5 percent. These estimates were presented by Finance Minister Barshaman Pun during a joint session of both houses of the Federal Parliament today.
“I anticipate achieving a 6 percent economic growth in the coming fiscal year through the implementation of the policies and programs proposed in the budget,” said Minister Pun. “Inflation is expected to be around 5.5 percent next year. Nepal Rastra Bank will formulate a monetary policy to support the implementation of these budgetary policies and programs. I believe that the execution of this budget will accelerate economic activities, boost production, create jobs, and lead to sustainable, broad-based, and inclusive economic growth.”
However, the government’s target of achieving a 6 percent economic growth rate for the current fiscal year has fallen short. The budget statement cites several factors contributing to the lower growth, including reduced consumer demand, limited expansion of credit, underutilization of the productive sector, and a decline in imports. As a result, the preliminary estimate for the current fiscal year’s economic growth rate stands at just 3.9 percent at producer prices. Additionally, the average price increase for the month of Chaitra has been limited to 4.6 percent.
