Nepal's Economy Faces Challenges in FY 2082/83 Amidst Policy Instability and Low Capital Expenditure
Summary
Nepal's fiscal year 2082/083 saw sluggish economic growth of 3.85 percent due to low capital expenditure and policy instability, with banks holding excess liquidity but low credit flow. Government inefficiency and political instability hindered development and private investment.
Key Points
- Nepal's economy grew by only 3.85 percent in fiscal year 2082/083, falling short of the 6 percent target due to low capital expenditure.
- Capital expenditure was limited to about 46.79 percent of the allocated budget, the lowest in Nepal's budget history, hindering development.
- Banks hold excess liquidity worth 15 kharba and 60 arba rupees, but credit expansion is only 6.5 percent due to low demand and economic uncertainty.
- Political instability and social movements disrupted economic agendas, worsening capital expenditure and investor morale.
