Only 3.9 percent GDP growth

By Bhola B Rana

Kathmandu, 13 July: Nepal’s economy in 2008/09 is expected to increase only by 3.9 percent instead of seven percent projected by the previous Maoist-led government, according to economic survey report released by the finance ministry.
Agriculture sector growth is estimated at only 2.1 percent while growth of the non-agriculture sector is estimated at 4.8 percent; growth in agriculture and non-agriculture sector will be below projections.
Continuous strikes, blockades, energy crisis, unfavourable weather and labour unrest adversely affected the national economy.
There was a boom in the construction sector in the capital.
Capital expenditure declined 2.9 percent in the first eight months of the current fiscal year while revenue collection increased 32.1 percent.
Inflation was 12 percent—highest in 17 years.
Government is announcing a Rs 175 billion budget for fiscal year 2009/10.
An estimated Rs 165 billion will be earmarked for the regular expenditure while Rs 55 billion has been set aside for capital expenditure.
Gross foreign exchange rose 15.4 percent to $3.6 billion until mid-May. Enough to meet merchandise imports for 12.4 months and service imports for 10.1 months, Nepal Rashtra Bank said.
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MEDIA GOOGLE

“Wait and watch, the Maoist-led government will be in place soon.”

(Chairman Prachanda, The Kathmandu Post, 13 July)

“There is the impression, and we feel this also, that OHCHR is competing with NHRC. This shouldn’t happen.”

(Spokesman of national Human Rights Commission (NHRC) Gauri Pradhan, The Kathmandu Post, 13 July)
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