‘2.16% Economic Growth Projection for FY 2080/81’

During the joint meeting of the Federal Parliament on Monday, Finance Minister Prakasharan Mahat unveiled the budget for the financial year 2080/81, revealing that the government has projected a modest economic growth rate of 2.16% for the upcoming fiscal year. Minister Mahat attributed this conservative forecast to the sluggish global economy and various internal factors.

Elaborating on the reasons behind the subdued growth projection, the Finance Minister highlighted the ongoing conflict between Ukraine and Russia, which has generated geopolitical uncertainties with potential implications for global trade and stability. Additionally, the persistence of high-interest rates, lower government capital expenditure, and a contraction in aggregate demand were identified as internal challenges negatively impacting the economy’s revival efforts in the aftermath of the COVID-19 pandemic.