Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Ministry of Finance has released the economic performance report for the first six months of the current fiscal year 2081/82, outlining key developments in Nepal’s trade, revenue, and expenditure sectors. According to the report, exports have seen significant growth, rising by 31.8% compared to the same period last year. Goods worth NPR 98.79 billion were exported between mid-July and mid-January, a sharp increase from NPR 74.97 billion in the same period of the previous fiscal year. This rebound comes after a 7.2% decline in exports during the previous year.
Meanwhile, imports during the first half of the fiscal year reached NPR 822.37 billion, marking a 7.1% year-on-year increase. Last fiscal year, imports during this period were recorded at NPR 768.17 billion. Despite the rise in imports, the import-export ratio has improved to 8.3:1 from 10.2:1 in the corresponding period of the previous fiscal year, indicating a narrowing trade imbalance.
The government’s revenue collection has also shown positive momentum, increasing by 12.7% in the first six months. This is a notable improvement from the 8.2% growth recorded in the same period last year. The rise in revenue collection has been attributed to enhanced tax administration and increased economic activities.
Government expenditure has also seen a rise, with total spending growing by 7.8% in the first half of the fiscal year. In contrast, expenditure had decreased by 1.7% in the corresponding period last year. Recurrent expenditure reached NPR 266.85 billion, accounting for 36.5% of the allocated NPR 731.79 billion. Capital expenditure, however, remained sluggish, with only NPR 56.94 billion, or 16.2% of the allocated NPR 352.35 billion, being spent during the six months.
Financial management expenditures have also been highlighted in the report. Of the total allocated NPR 367.28 billion, NPR 158.66 billion, or 43.2%, had been spent by the end of the six months. The government has transferred NPR 185.44 billion in grants, including NPR 68.26 billion in fiscal equalization grants, NPR 112.25 billion in conditional grants, NPR 2.43 billion in complementary grants, and NPR 2.51 billion in special grants. This represents 45.4% of the annual allocation for grants.
Revenue-sharing among local levels amounted to NPR 51.74 billion, equivalent to 32.5% of the allocated NPR 159 billion for the fiscal year. Financial institutions also reported growth, with deposits increasing by NPR 211 billion and a 3.3% improvement in deposit collection. Credit disbursement grew by 4.41%, reflecting increased borrowing in the economy.
The government’s focus on fiscal reforms and revenue enhancement has contributed to these positive trends. However, challenges remain in accelerating capital expenditure and addressing the persistent trade deficit. The Ministry of Finance emphasized the need for sustained efforts to improve financial discipline and boost economic growth.
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