Weekly economic updates (29th May 2024–04th June 2024)
3 min readJun 5, 2024
- Annual Budget Unveiled — Finance Minister Barshaman Pun presented the country’s annual Financial Plan on Tuesday. The plan is worth NPR 1.86 trillion for the next fiscal year starting mid-July. The budget is 6.2% larger than the unrevised budget of the current fiscal year.
(Source: https://kathmandupost.com/money/2024/05/29/rs1-86-trillion-financial-plan-with-lofty-goals ) - Budget Transparency Score Better than Average — In the Open Budget Survey (OBS), Nepal’s budget transparency has secured a score of 50, surpassing the global average of 45 out of 100. Nepal has also scored 31 in public participation and 36 in legislature oversight.
(Source: https://myrepublica.nagariknetwork.com/news/nepal-improves-budget-transparency-with-a-score-of-50-in-open-budget-survey/ ) - Legalization of Marijuana — The use of marijuana for medical purposes will be authorized by the government. In the budget forecasts, the finance minister announced that the required legislation would be drafted to allow for the commercial cultivation of marijuana in the nation.
(Source:https://thehimalayantimes.com/nepal/budget-govt-to-legalize-marijuana-for-medicinal-purpose) - Tourism-Related Training Witnessed a Notable Surge in the Last Ten Years- Between the fiscal years 2013/14 AD and 2022/23 AD, the number of individuals engaging in education and training related to tourism, including hotel management, mountain climbing, trekking guiding, homestay management, and porter guiding, has reached 25,686. This demonstrates a substantial increase from the 2,784 individuals reported in the fiscal year 2013/14 AD.
(Source: https://www.newbusinessage.com/Articles/view/21122#:~:text=Tourism%2DRelated%20Training%20Witnesses%20a%20Notable%20Surge%20in%20the%20Last%20Ten%20Years,-May%2029%2C%202024&text=KATHMANDU%3A%20Over%20the%20past%20decade,particularly%20in%20trekking%2Drelated%20activities. ) - Non-Life Insurance Companies Earn NPR 33 Billion — Non-life insurance companies sold products worth approximately NPR 33 billion in the first 10 months of the current fiscal year. According to data released by the Nepal Insurance Authority (NIA), 14 non-life insurance companies sold 2,393,182 insurance policies by the end of Baisakh, generating a total insurance premium of NPR 32.87 billion.
(Source: https://www.newbusinessage.com/Articles/view/21144#:~:text=According%20to%20data%20published%20by,earning%20the%20highest%20insurance%20premiums.) - NOC Cuts Fuel Prices — Starting May 31, Nepal Oil Corporation has reduced the price of petrol by NPR 3 per liter and that of diesel and kerosene by NPR 1 per liter. The corporation sets prices according to the tariffs it received from its supplier, Indian Oil Corporation.
(Source: https://kathmandupost.com/money/2024/05/31/nepal-oil-corporation-slashes-fuel-prices-1717169607 ) - CNI Objects to NEA Exporting Electricity — Following the Nepal Electricity Authority’s decision to export 400 MW of electricity daily since 27 May 2024, the Confederation of Nepalese Industries (CNI) has raised objections to this decision as Nepal continues to experience load-shedding.
(Source: https://ekantipur.com/en/business/2024/06/01/objection-to-exports-without-providing-enough-electricity-to-domestic-industry-55-25.html ) - CNI Expresses Doubts in Budget — The Confederation of Nepalese Industries (CNI) has welcomed the FY 2024/25 AD federal budget, terming it balanced, but has expressed doubts about whether the new budget will revive the country’s economy amid its current challenging situation and asks for its effective implementation.
(Source: https://ekantipur.com/en/business/2024/05/31/budget-cannot-keep-economy-running-confederation-54-42.html ) - NEA Resumes Power Export to India as Water Levels in River Rise- The Nepal Electricity Authority (NEA) has resumed exporting electricity to India as hydropower projects increase their output due to rising water levels in rivers. Kul Man Ghising stated that NEA is currently exporting around 400 MW and aims to export between 1,000 to 1,200 MW of excess energy during this year’s wet season.
(Source: https://en.himalpress.com/nea-resumes-power-export-to-india-as-water-levels-in-rivers-rise/) - New Everest rules ordered — Due to rising traffic and littering in Everest region, the government has been ordered by a division bench of justices, to issue climbing permits only after indicating the number of climbers and within the capacity to accommodate them safely.
(Source:https://kathmandupost.com/money/2024/06/01/everest-becomes-cash-cow-nepal-s-top-court-orders-limit-on-climbs)
