Positive situation has been created in the economy: Ministry of Finance

Kathmandu: The Ministry of Finance has analyzed that the positive situation in the economy has been created due to the recent movement in the midst of the corona virus epidemic.

The Ministry has made such analysis by making public the review details of the first four months of the current Fiscal Year 2020/2021.

According to the ministry, the external sector is getting stronger in the first four months of the current fiscal year with the gradual improvement in the balance of trade, current account and balance of payments and foreign exchange reserves.

The ministry said there were some challenges to the expansion of economic activity due to the contraction in imports due to the risk of corona. Meanwhile, the ministry stated that the trade deficit had improved by 1.5 percent due to an increase in exports. The share of exports and remittances in the first four months was 9.08 percent respectively.

In the first four months, total federal spending exceeded the target by 19.1 percent. The share of current expenditure is large. As of mid-November, current expenditure has reached Rs. 230 billion. Capital expenditure is only Rs. 29.44 billion.

In four months, the revenue collection has progressed by 94 percent. Income tax rose 2.7 percent, the ministry said.

The collection of customs revenue has also increased by 2.2 percent. Foreign aid commitment has reached Rs. 90.55 billion in the first four months.

Stating that access to finance has expanded, the ministry said that the continuous improvement in the Nepse index has further strengthened the capital market. The Ministry of Finance claims that this has created a positive situation in the economy.

According to the Ministry of Finance, the development work could not be fully operational in the first month of the current fiscal year due to the epidemic of Covid 19. As a result, capital expenditure did not increase significantly in those months.

The ministry claims that capital expenditure has gained momentum in recent days. In four months, capital expenditure reached 8.34 percent of the total target.