Kathmandu,23 Feb 2015: The government has estimated around 93 per cent capital expenditure of total allocation in the current fiscal year.
In the midterm review report of current fiscal year budget released here Monday, the Government estimates that the actual expenditure this year would surpass that of the previous year.Â Although the capital expenditure so far is not so encouraging, it is likely to go up in coming next six months as tender process for large infrastructure projects has been initiated and a favourable season for carrying out development works has started, said Finance Minister Dr Ram Sharan Mahat.
Actual expenditure till the end of the current fiscal is estimated to stand at 92.63 per cent (Rs 505 billion) of total budget which is more than 28.55 per cent compared to last fiscal year.
On the occasion Minister Mahat pledged sufficient allocation to the approved development projects. Adverse impact of climate on agricultural sector, the major contributor to national economy, has hampered the economic growth, he said, adding that however the economic growth rate this year was estimated to be near to previous point.
The 7.3 inflation rate in the first six months of the current fiscal has indicated annual rate in average would be below the target line.Â This rate in both edible and non-edible groups in the first six months is lower than of the corresponding period last year.
Country’s trade deficit which is on the bull-run for the past few years was recorded high ( Rs 344 billion) until the first half of the current fiscal, too.Â There is a need of increasing domestic production and promoting export of goods to reduce high trade deficit facing the country, the Finance Minister stressed.
Likewise, revenue collection in this period has exceeded the target of Rs 185 billion by 16.57 per cent.
Nepal has been pledged foreign assistance of Rs 217 billion, which according to Minister Mahat, is a historic record and the achievement of the incumbent government.
On the occasion, National Planning Commission Vice Chair Prof Dr Govinda Raj Pokhrel said delay in approving the development projects by various ministries have discouraged theÂ capital expenditure.