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Economic Survey 2018/19

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Economic Survey 2018/19 Economic Survey 2018/19 Economic Growth Rate (In Percent) Gross Domestic Saving and Gross Fixed Capital 9.0 Formation (As percent of GDP ) 8.0 40.0 7.0 35.0 6.0 30.0 5.0 25.0 4.0 20.0 3.0 15.0 2.0 10.0 1.0 5.0 0.0 0.0 Saving Fixed Capital Trend of Revenue Province-wise Contribution on GDP 12.0 Consumer Price Inflation 30.0 Sudurpa shchim 10.0 25.0 Karnali Province 6% no. 1 20.0 4% 8.0 Province 15% 15.0 no.5 6.0 13% Province 10.0 no. 2 4.0 5.0 13% 0.0 Gandaki 8% 2.0 0.0 Province no. 3 As percent of GDP Growth rate 41% 40.0 Growth of Export and Import (In Percent) Tourist Arrival (In Thousands) 30.0 1200 20.0 700 10.0 0.0 200 -10.0 -20.0 -300 -30.0 Export Import By Air By land Government of Nepal Ministry of Finance Singh Durbar, Kathmandu Economic Survey 2018/19 Government of Nepal Ministry of Finance Singhdurbar, Kathmandu Foreword Finance Minister has to submit, as per the constitutional provision, the annual estimates of government’s revenue and expenditures of each year in the joint session of both the houses of Federal Parliament on 15 th day of Jestha of previous fiscal year. Annual economic survey is to be submitted to the house prior to tabling the ‘Annual Estimates of Revenue and Expenditures’ to the Parliament. This Economic Survey 2018/19 has been published along this line by incorporating overall economic situations, major economic activities, major economic indicators and their analysis till mid-March of FY 2018/19. During the last few years, the economic growth rate of Nepal has remained high and inflation has remained benign. Government fiscal and financial sector have maintained stability. However, external sector has been experiencing an extra pressure to maintain stabilility. There have been significant improvements in major social indicators. The progress of agriculture and tourism sector has been satisfactory. The construction and expansion of physical infrastructures have been geared up. Investment and industrial activities have increased due to reliable and regular power supply. With the increase in registration and establishment of industries, the utilization of required raw materials has increased for industrial production and long-term capital formation. Additional employment opportunities have been created. Investment environment has been strengthened. As a result, the foundation for achieving higher economic growth has been set up. In this survey, efforts have been made for analyzing the overall economic situations. Likewise, efforts also have been made to incorporate the achievements of implemented development programs and presenting other statistical data in terms of provincial base as far as possible. I hope, this survey would be useful to all stakeholders who want to be updated with overall economic situations of the country. Finally, I would like to thank all agencies, and officials, especially officials of Finance Ministry, who have immensely engaged in preparing this survey. May, 2019 Dr. Yuba Raj Khatiwada Finance Minister Table of Contents Foreword List of Table List of Chart Short Form Executive summary 1. Overall Economic Situation 1 2. Provincial Economic and Social Situation 12 3. Public Finance 16 4. Price 32 5. Financial Sector 34 6. External Sector 41 7. Poverty Alleviation and Employment 44 8. Agriculture,Forest and Land Reform 51 9. Industry, Commerce, Supply and Tourism 63 10. Housing and Urban Development, Environment and Energy 75 11. Physical Infrastructure, Transport and Communication 82 12. Social Sector 89 13. Post-Earthquake Reconstruction 106 14. Governance 109 Microeconomic Indicators Annex Tables List of Tables Table 1 (a) World Economic Growth Rate 1 Table 1 (b) Economic Growth Rate of South Asian Countries and China 1 Table 1 (c) Global Inflation Rate 2 Table 1 (d) Inflation Rate in South Asia and China 2 Table 2 (a) Provinc e-wise Economic and Social Indicators 13 Table 2 (b) Status of Revenue Distribution 14 Table 2 (c) Details of Province-wise Grant 14 Table 2 (d) Details of the Grant at Local Level 15 Table 3 (a) Status of Government Finance 16 Table 3 ( b) Fiscal Indicators 17 Table 3 (c) Inter-Governmental Financial Transfer Details 21 Table 3 (d) Functional Details of Federal Recurrent Expenditure 22 Table 3 (e) Functional Details of Federal Capital Expenditure 22 Table 3 (f) Status of Irregularities 24 Table 3 (g) Structure of Government Revenue 25 Table 3 (h) Structure of Federal Government's Income 25 Table 3 (i) Ratio of Income, Revenue, Grants and Debt to Total Government Expenditure 25 Table 3 (j) Revenue Structure f or the Last Five Years 26 Table 3 (k) Total Revenue up to mid-March of FY 2018/19 26 Table 3 (l) Revenue upto mid-March of FY 2018/19 (after distribution) 26 Table 3 (m) Outstanding Public Debt, Principal Repayment and Interest Expenses 29 Table 5 (a) Key Indicators of Financial Sector 35 Table 5 (b) Branches of Banks and Financial Institutions by Province 35 Table 5 (c) Annual Point to Point Changes of Major Monetary Aggregates 36 Table 5 (d) Bank Rates, Refinance Rate and Required Reserve Ratio 36 Table 5 (e) Status of Dematerialization of Securities 38 Table 5 (f) Investment on Life and Non-life Insurance Business 39 Table 5 (g) Number of Branches of Life and Non-life Insurance Companies 39 Table 5 (h) Status of Deposit and Credit Guarantee Fund 40 Table 6 (a) Status of Remittance Inflow 42 Table 6 ( b) Status of Dividend Payment 43 Table 7 (a) Key Indicators of Poverty 44 Table 7 (b) Key Employment Indicators as per Labor Force Survey, 2017/18 45 Table 7 (c) Employment related Indicator and Goals of 15 th Plan and Long Term Vision . 45 Table 7 (d) Details of Labor in Foreign Employment with Work Permit 46 Table 7 ( e) Status of Country -wise Foreign Employment 47 Table 7 (f) Labour Approval Details for Foreign Employment 47 Table 7 ( g) Number of Deaths During Foreign Employment and Details of Financial Support 47 Table 7 (h) Details of Ailing and Maimed Nepali Migrants Worker 48 Table 7 (i) Details of Participants in Various Programs Related to Foreign Employment 48 Table 7 (j) Number of Foreign Workers with Work Permit 48 Table 7 (k) Trade Union Registration Details 48 Table 7 (l) Number of Trainees Trained During Last 10 Years 49 Table 8 (a) Foundation -seed Production and Introduction of Crop Varieties 57 Table 8 (b) Status of Livestock Credit 58 Table 8 (c) Status of Forest Areas of Neighboring Countries 59 Table 8 (d) Status of Nepal’s Forest Areas 59 Table 8 (e) Situation of Provincial Forest Areas 60 Table 8 (f) Situation of Forest Product Collection 60 Table 8 (g) Status of Wildlife Number 60 Table 8 (h) Status of Tourist Visited in the Conservation Area and Revenue Income 61 Table 9 (a) Industry Registration Details 64 Table 9 (b) Province wise Industry Registered under Department of Industry 64 Table 9 (c) Registration and Investment by Industry Types 64 Table 9 (d) Details of Registered Industries During the Last 10 Years 65 Table 9 (e) Total Foreign Investment During Last Ten Fiscal Years 65 Table 9 (f) Details of Foreign Investment Industries 65 Table 9 (g) Foreign Investment by Country 66 Table 9 (h) Province wise Foreign Investment on Industry 66 Table 9 (i) Status of Company Registration 67 Table 9 (j) Province-wise Details of Company Registration 67 Table 9 (k) Details of Industrial Intellectual Property 67 Table 9 (l) Status of Petroleum Products Import 71 Table 9 (m) Province-wise Details of Royalty from Mountaineering in 2018 74 Table 10 ( a) Province -wise Distribution of Housing Units 75 Table 10 (b) Total Housing Units Handed-over in FY 2018/19 75 Table 10 (c) Access to Electricity by Province 77 Table 10 (d) Province-wise Production of Electricity 77 Table 10 (e) Current Status of Access to Electricity in Municipalities by Province 78 Table 10 ( f) Completed Hydropower Projects 78 Table 10 (g) Hydropower Projects Under Construction (Projects to be completed in FY 2018/19) 79 Table 10 (h) Hydropower Projects under Construction (To be completed in FY 2019/20) 79 Table 10 (i) Status of Hydropower Production Permissions 80 Table 10 (j) Sector-wise Electricity Consumption 81 Table 11 (a) Road Expansion by Federal Government 82 Table 11 (b) Status of Road Expansion of the Last Five years 82 Table 11 (c) Details of Local Roads by Provinces 82 Table 11 (d) Description of R oads Constructed by Local Levels 83 Table 11 (e) Local Road Expansion by Geographical Region 84 Table 11 (f) Civil Aviation Indicators 85 Table 11 (g) Number of Audio-visual Permits 86 Table 11 (h) Total Number of Telephones Distributed 87 Table 11 (i) Comparative Details of Registered Newspapers. 87 Table 11 ( j) Registered Newspapers by Language 88 Table 12 (a) Achievements based on Educational Indicators 89 Table 12 ( b) Province -wise De tails of Different Levels of Schools 93 Table 12 (c) Details of School and School Types 93 Table 12 (d) Level wise School, Teacher and Student Ratio 93 Table 12 (e) Details of Teachers at Community and Institutional Schools 94 Table 12 (f) Schoolwise and Level-wise Gender Details of Teachers 94 Table 12 ( g) Province -wise Details of Teachers at Community Schools 94 Table 12 (h) Status of Student Enrollment at Schools 95 Table 12 (i) Level-wise Student Enrollment Status in the Academic Year 2017/18 95 Table 12 (j) Province-wsie Details of Student Enrollment 95 Table 12 (k) Level-wise Details of Student Enrollment Rate 96 Table 12 ( l) Province -wise Net Student Enrollment Rate 96 Table 12 (m) SEE (previous SLC) Examination Details – General Stream 97 Table 12 (n) SEE (Previous SLC) Examination Details –Technical
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