Economic Survey for FY 2022/23 presented in Parliament

Finance Minister Dr Prakash Sharan Mahat has presented the Economic Survey of Fiscal Year 2022/23 and the Annual Situation Review of Public Corporations, 2023 in the separate meetings of the House of Representatives (HoR) and the National Assembly today.

Tabling the Economic Survey, the Finance Minister said that the world economy was in crisis in 2023 and its impact was felt in Nepal’s economy also.

“There was a contraction in the overall economic activities including the wholesale and retail business, construction and the production of production-based industries due to the international economic situation and structural problems. It is estimated that the country’s economic growth rate will be around 2.16 per cent in the current fiscal year as a result of this,” he said.

The Finance Minister said a strain was seen in resource management as well due to the slowdown in economic activities owing to the contraction in the import of goods and decrease in the overall demand.

He pointed out that the problem was also because of the rise in the prices of petroleum products, food grains and raw materials in the world market.

Minister Mahat maintained that positive indications have also been seen in the economy like the balance of payment was in surplus, the foreign currency reserve has gone up and tourist arrivals have increased, among others.

According to the Economic Survey, the federal government has constructed 34,100 kilometres road and the total installed power capacity has reached 2,666 megawatts, student enrollment has increased at basic level, the net maternal mortality rate and infant mortality rate have gone down, and 95 per cent of the population has access to basic drinking water and electricity service.

Also today, the Finance Minister presented in the HoR a report on the status of present performance and financial situation of public corporations along with an analysis of the problems and challenges.

“Although the public corporations played a significant role in the country’s economic, social and infrastructure development in the past, their overall financial situation is not satisfactory due to the shortcomings, especially seen in the operation and management, over time,” he added.

As the Finance Minister shared on the occasion, 25 out of the 44 public corporations having the government’s investments are in profit while the government’s shares and loan investments as of July 16, 2022 has reached Rs 618 billion.

The government has acquired profit equivalent to Rs 6.16 billion from the public corporations in the last fiscal year, which is only one percent of the investment.