Weekly Economic Update(16 June, 2023–22 June 2023)
1. Fiscal Federalism Update Launched: The World Bank launched its first Nepal Fiscal Federalism Update revealing Nepal made significant progress on fiscal federalism. The annual report highlighted the need for a fiscal federalism roadmap containing a clear set of actions to improve outcomes in Nepal. (Source: https://kathmandupost.com/money/2023/06/17/world-bank-report-recommends-reforms-to-strengthen-fiscal-federalism-in-nepal)
2. Nepal Heading Towards Stagflation: Economists have revealed Nepal is heading towards stagflation, despite necessary measures taken by the government. It has worsened food poverty, effects of climate change, and reliance on imported food. As a result, GDP predictions have fallen drastically. (Source: https://kathmandupost.com/money/2023/06/20/nepal-staring-at-impending-stagflation-economists-say)
3. Nepal’s Per Capita Debt Stands at NPR 74,516: Nepal’s total public debt liability as of mid-June has amounted to NPR 2.173 trillion as per data released by the Public Debt Management Office(PDMO). When compared with the total population, the per capita debt turned out to stand at NPR 74,516.(Source: https://myrepublica.nagariknetwork.com/news/nepal-s-per-capita-debt-soars-to-rs-74-516)
4. Farmers Protest on Low Price of Tomatoes: Farmers protested the low prices of tomatoes by throwing around 90 tonnes of tomatoes on streets of Kalimati. The protest emerged after prices of Nepali tomatoes dropped to NPR 35/kg. (Source: https://kathmandupost.com/money/2023/06/18/throwing-vegetables-on-the-road-becoming-a-habit)
5. Seven Provinces Budget Unveiled: All seven provinces on June 16 announced a total budget of NPR 279.59 billion for the fiscal year 2023/24. The amount allocated by the provincial governments for the next fiscal year is around Rs 26 billion less than the amount allocated for the current fiscal year.(Source: https://myrepublica.nagariknetwork.com/news/seven-provinces-unveil-total-budget-of-rs-279-59-billion-for-the-fy-2023-24/)
6. NRB Preparing Digital Currency Launch: Nepal Rastra Bank (NRB) is preparing to issue digital currency in Nepal. The need for digital currency is seen as Nepal sees monthly digital transactions of NPR 40 billion. (Source: https://myrepublica.nagariknetwork.com/news/nrb-preparing-to-issue-digital-currency-in-nepal/)
7. Government Revenue Collection Reduced: The government’s revenue collection for the current fiscal year fell short compared to the previous year. As of mid-May to mid-June, the government collected a total of NPR 486.4 billion.(Source: https://myrepublica.nagariknetwork.com/news/govt-revenue-collection-falls-short-by-rs-1-78-billion-as-compared-to-first-11-months-of-last-fy/)
8. Hetauda Cement Factory Resumes Operation: The Hetauda Cement Industry that remained closed for the past two months resumed operation on June 21. The industry management revealed it was closed after some equipment broke down and due to lack of coal. (Source: https://myrepublica.nagariknetwork.com/news/closed-hetauda-cement-industry-resumes-operation/)
9. KMC Meets 80% Revenue Target: The Kathmandu Metropolitan City (KMC) collected revenue over NPR 8 billion in the first 11 months of the current fiscal year. The metropolis had set a revenue collection target of NPR 10.41 billion for the fiscal year 2022/23. The actual collection stood at 80.20 percent of the targeted amount. (Source: https://myrepublica.nagariknetwork.com/news/kmc-meets-80-percent-of-its-annual-revenue-target-in-11-months-of-the-current-fy/)
10. Gorahi Cement IPO Suspended: The Initial Public Offerings (IPOs) of Ghorahi Cement were ceased by the Securities Board of Nepal (Sebon) on June 19. The procedure that began on June 15 has been halted suspecting a case of “fake subscription” on issuing IPOs. (Source: https://myrepublica.nagariknetwork.com/news/sebon-suspends-ghorahi-cement-s-ipos-issuance-process-citing-fake-subscription/)
