Kathmandu. Finance Minister Dr. The Economic Survey of the fiscal year 2082/83 presented by Swarnim Wagle in the parliament has said that Nepal’s macroeconomic indicators have improved even amidst uncertainty in the world economy and regional conflicts.

According to the survey, Nepal’s economy is projected to expand by 3.8 5 percent in the current fiscal year.The government has claimed that Nepal’s growth rate is positive amid the expectation that the world economy will shrink to 3.1 percent . During this period, the total size of the economy is estimated to reach 6.6 trillion rupees and the per capita national income will be $1,535.

The economic growth rate of Bagmati and Gandaki provinces is expected to be above the national average while the growth rate of other provinces is expected to be below the average.The contribution of agriculture sector to the GDP is estimated to be 24 percent and the non- agricultural sector is estimated to be 76 percent. According to the survey, Bagmati Province will continue to dominate economic activities and contribute 36.7 percent to the GDP.

Rice production declined by 4.2 0 per cent to 5.705 million metric tonnes (, indicating that the agriculture sector continues to face challenges. In terms of revenue and expenditure, federal revenue has increased by 3.2 percent while government expenditure has increased by 10.4 percent. However, the survey shows that capital expenditure is relatively weak. Public debt has reached Rs 2,878 billion, which is 43.6 per cent of the GDP. In the current fiscal year, the government has mobilized Rs 300 billion in public loan.

The survey has shown strong external sector indicators. The remitt ance inflow (remittance) has increased by 37.7 percent to Rs 1.450 trillion. The foreign exchange reserves have reached Rs 3.414 trillion, which has the capacity to sustain the import of goods and services of 18.5 months. However, the trade deficit has increased by 11.2 percent to Rs 10.98 trillion, which is seen as a major challenge for the economy.

Technology-friendly payment systems have also expanded significantly. According to the survey, the transaction of QR has crossed Rs 125 billion by mid-March. Overall, the Economic Survey indicated that while the external sector strengthened and the macro indicators improved, thechallenges to domestic production, investment and trade balance still persisted.