Government of Nepal is ready to bring up the BUDGET for the fiscal year 073/074 (2016-17). After the approval from meeting of cabinet and president ,the Budget is ready to be published. The budget is near to 4 kharb, which will also separate enough expense for the election. The Budget will not include any political programs or political agendas. Due to the political clash, previous government was not able to bring the full BUDGET.
Each individual, since their school class, are taught that Nepal has got the highest potential of economic growth that may easily reach double digit. The huge water resource, natural gift of mountain, river, topographic structure, adventure destinations and hospitality is really the best in this whole world. If only 1/3 of this resource is utilized properly, Nepal could easily reach the path of success.
This has been the story ever since we were reading in class five and no sign of improvement is seen till now. 13 years has been passed, and more than 10 prime minister have already migrated to Baluwatar. But, none of them succeeded to show the path of economic growth to Nepal. Even the situation has more worsened. Nepal has been relegated from developing country to least developed country and the nation has started to depend fully upon the remittance economy. What other could be the factor of shame rather than the act of remittance driven economy.
After Maoist came into the main stream of the politics, investors, business person and layman, all were quiet optimistic that the economy will boost up. Investors outside the country were also positive about the situation and as a result, FDI reached the apex. But none of thing went well to suppress the awful circumstances. And as a result, Nepal went in a dark tunnel leading nowhere.
Early morning, the daily newspapers were describing about the economic situations of the fiscal year 2069/70. I become upset to learn that the economic growth of the country is no more than 3.65%. The per capita income of the country is $ 721, (i.e. NRS 62,997) and the GDP of the country is RS 1.7 trillion. The most amazing thing is that 90.7% of total GDP is covered by consumer consumption. Nation has really missed the capital expenditure which is the key to economic growth. It is excellent that the contribution of service sector is increasing in GDP. But it must have a strong industrial backup. Service sector alone can’t do everything on its own. But the same phenomenon is happening in Nepal. Country is fully dependent upon the import of foreign goods. The trade deficit of the country is NRS 0.5 trillion and this trend is increasing. In the mean time, the country has earned a lot of liability of foreign aid and loan. In this fiscal year, the total foreign aid received by the nation is NRS 46.97 billion and the foreign loan is NRS 25.83 billion. The total foreign reserve in the country made by central bank is NRS 453 billion which is all possible by the remittance. Yet, more than 23% of the total population of the country is below the poverty line.
This is not the end of the story. Small improvements are also seen in the economy, but it is only in the small scale for a huge economic growth. In the single fiscal year 2069/70, 746 MW of total electricity is connected in the main stream. It is a good symbol towards the path of success. Altogether, 128 KM of graveled road is turned into metallic road and 194 KM of new road is constructed. The child mortality has decreased significantly, while the students joining the school have increased. The population reaching telephone service has reached to 1 crore 96 lakhs, which is above 2/3rd of total population. All these events are good indicators of economic progress, but the level of growth is very trace in amount.
Once again, the government of Nepal has declared an election of constitutional assembly in Mangsir 2070. With this election, the silver lining is seen in the grey cloud. Yet, the situation is not skewed fully on our hand. Few political parties are protesting against it. But there is now way apart from it to participate in this election and move towards the economic growth.