Economic Survey 2019/20 - mof.gov.np

1 Economic Survey 2019/20 Government of Nepal Ministry of Finance Singh Durbar, Kathmandu Exchange Rate and Inflation Rate Foreign Exchange Rate (NRS/US$)Inflation Rate (Right Axis) Expenditure and Revenue (In Ratio of Gross Domestic Product)Government growth Rate and Per Capita GDP growth Rate (In percent) Per Capita GDP growth RateGDP growth Rate (In Percent)Province 16%Province 14% Bagmati36%Gandaki9%Province Composition of Gross Domestic Product Rate of export and Import (In Percent) ExportImport (Unofficial Translation) Economic Survey 2019/20 Government of Nepal Ministry of Finance Singh Durbar, Kathmandu Foreword This Economic Survey 2019/20 has been published incorporating details of Economic activities, macroeconomic situation and major Economic indicators and their analysis covering the first eight months of the fiscal year 2019/20 .

2 Macroeconomic indicators till mid-March of fiscal year 2019/20 have remained satisfactory. During this period, inflation rate, balance of payment position, foreign exchange reserves, investment and financial indicators are observed becoming favorable to Economic stability. Due to contraction in import and expansion in exports, there has been an improvement in trade deficit and balance of payment situation is in surplus in this period. Financial services have expanded significantly and foreign investment has increased encouragingly. Towards the physical progress, consumption of electricity has gone up; import of electricity has been remarkably reduced and even export of electricity has commenced. Satisfactory achievement has been made in physical infrastructure development.

3 Reconstruction has gained momentum and projects of national pride require some additional efforts for speedy implementation. But, in recent times, due to the coronavirus pandemic and various measures taken to prevent and control its outbreak, Economic activities have been severely affected. Business and investment environment has become riskier; and hence, Economic growth is preliminarily assumed to be low in current fiscal year. In coming days, it is necessary to move forward by focusing on the revival of Economic activities while making the lives of the citizens safe. I believe that this Survey would be useful to all those who want to be informed about the Economic situation of the nation. I would like to thank all employees of Ministry of Finance and other offices under it for their involvement in the preparation of this publication and other officials and organizations who have supported by providing necessary statistics and information.

4 Thank you! May, 2020 Dr. Yuba Raj Khatiwada Finance Minister Table of Contents Foreword List of Tables List of Charts Abbreviations Executive Summary 1. Overall Economic Situation 1 2. Provincial Economic and Social Situation 18 3. Public Finance 21 4. Price 43 5. Financial Sector 45 6. External Sector 55 7. Poverty Alleviation and Employment 59 8. Agriculture, Forest and Land Reform 67 9. Industry, Commerce, Supply and Tourism 85 10. Housing and Urban Development, Environment and Energy 103 11. Physical Infrastructure, Transport and Communication 110 12. Social Sector 123 13. Post-Earthquake Reconstruction 149 14. Administration and Good Governance 152 15. Coronavirus Prevention, Control, Treatment and Relief 156 Macroeconomic Indicators Annexes List of Tables SN Descriptions Page Table 1(a): Global Economic growth Rate 1 Table 1(b): Economic growth Rate of South Asian Countries and China 2 Table 1(c): Global Inflation 3 Table 1(d): Inflation in South Asian Nations and China 3 Table 2(a): Province-wise Social and Economic Indicators 19 Table 3(a): Fiscal Position of Federal Government 22 Table 3(b): Fiscal Indicators of Federal Government 23 T a b l e3(c): Functional Details of Federal Recurrent Expenditure 27 Table 3(d): Functional details of Federal Capital Expenditure 27 Table 3(e): Details of Individual and Business PAN Holders 29 Table 3(f): Government Income Structure 29 Table 3(g).

5 Income Structure of Federal Government 30 Table 3(h): Ratio of Income, Revenue, Grants and Debt to Federal Government Expenditure 31 Table 3(i): Federal Revenue Structure Over the Last 3 Years 31 Table 3(j): Structure of Import Based Taxes and Internal Taxes 32 Table 3(k): Details of Revenue Collected in Federal Consolidated Fund and Divisible Fund 32 Table 3(l): Details of Revenue after Distribution 33 Table 3(m): Distribution of Royalties by mid-March of Fiscal Year 2019/20 33 Table 3(n): Outstanding Public Debt with Principal Repayment and Interest Expenses 37 Table 3(o): Inter-Governmental Fiscal-Transfer 38 Table 3(p): Trend of Capital Expenditure of Province Government 39 Table 3(q): Province-wise Budget and Status of Expenditure 40 Table 3(r): Collection in Provincial Consolidated Fund and Divisible Fund 40 Table 3(s): Expenditure Status of Local Levels 41 Table 3(t): Revenue Collection of Local Levels 41 Table 5(a): Major Indicators of Financial Sector Stability 46 Table 5(b): Province-wise Branches of Bank and Financial Institutions 47 Table 5(c): Annual Percentage Point Change of Major Monetary Aggregates 48 Table 5(d): Bank Rate, Refinancing Rate and Compulsory Reserve Ratio 49 Table 5(e): Status of Securities Dematerialization 52 Table 5(f): Investable Assets of Life and Non-Life Insurance Sectors 52 Table 5(g): Number of Life and Non-Life Insurers 53 Table 5(h).

6 Status of Deposit and Credit Guarantee Fund 54 Table 6(a): Status of Remittances Inflow 57 Table 6(b): Status of Dividend Payment 57 Table 7(a): Poverty Related Key Indicators 59 Table 7(b): Key Employment Indicators as per Labor Survey 60 SN Descriptions Page Table 7(c): Details of Employment Generated from Prime Minister Employment Program 60 Table 7(d): Implementation status of Terai-Madhes Prosperity Program 61 Table 7(e): Number of Foreign Nationals Given Work Permit 62 Table 7(f): Details of Labors in Foreign Employment with Work Permit 63 Table 7(g): Details of Manpower Companies licensed to Send Labor for Foreign Employment 64 Table 7(h): Country-wise Foreign Employment Status 64 Table 7(i): Number of Deaths During Foreign Employment and Details of Financial Support 65 Table 7(j): Details of Foreign Employment Related Service Recipients 66 Table 8(a): Commodities with Minimum Support Price 68 Table 8(b): Status of Agriculture Crops Production 70 Table 8(c): Province-wise Production Ratio of Major Food Crops During the Current Fiscal Year 72 Table 8(d): Per Head Meat and Eggs Availability 75 Table 8(e): Foundation Seeds Production and Release of Crop Varieties 78 Table 8(f): Status of Credit Services to Livestock and Vegetable Crops 79 Table 8(g): Province-wise Status of Forest Sector 80 Table 8(h): Local Level-wise Status of Forest Areas 81 Table 8(i): Numbers of Wildlives 82 Table 9(a).

7 Details of Industry Registration 86 Table 9(b): Industry Registration and Investment as per Classification 87 Table 9(c): Details of Industries of Foreign Investment as per Industry Classification 88 Table 9(d): Country-wise Foreign Direct Investment 89 Table 9(e): Province-wise Details of Micro, Cottage and Small Industries 90 Table 9(f): Status of Ease of Doing Business of Nepal in the Last Four Years 90 Table 9(g): Details of Province-wise Registered Companies 92 Table 9(h): Details of Industrial Intellectual Property Rights 93 Table 9(i): Status of Petroleum Products Import 98 Table 9(j): Province-wise Royalty collected from Mountaineering 100 Table 10(a): Details of Province-wise Access to Electricity 105 Table 10(b): Total Hydropower Generation (MW) 106 Table 10(c): Hydropower Projects Completed During mid-March of 2019/20 106 Table 10(d): Status of Access to Electricity at Province and Local Levels 107 Table 10(e): Sectoral Power Consumption 108 Table 11(a): Road Expansion by Federal Government 110 Table 11(b): Status of Road Facility Expansion in Last Five Years 110 Table 11(c): Province-wise Details of Local Roads 111 Table 11(d): Details of Roads Constructed by Province and Local Level 111 Table 11(e): Local Road Expansion by Geographical Region 112 Table 11(f): Indicators Related to Civil Aviation 114 Table 11(g): Details of Railway Lines and Track Beds 115 SN Descriptions Page Table 11(h).

8 Indicators Related to Communication and Information Technology 116 Table 11(i): Number of Permits related to Audio-Visuals 117 Table 11(j): Details of Internet Users 119 Table 11(k): Total Number of Telephone Distribution 119 Table 11(l): Comparative Details of Registered Newspapers 120 Table 11(m): Details of Newspapers Registered by Language 120 Table 11(n): Electronic Signature (Token) 121 Table 12(a): Indicators of Educational Achievements 123 Table 12(b): Province-wise Details of Different Level of Schools 127 Table 12(c): Details of Schools According to Their Types 128 Table 12(d): Grade-wise School, Student and Teacher Ratio 128 Table 12(e): Details of Community and Institutional School Teachers 128 Table 12(f): School-wise and Level-wise Teachers' Gender details 129 Table 12(g): Province-wise Details of Community School Teachers 129 Table 12(h): Status of Student Enrollment at School Levels 130 Table 12(i): Status of Level-wise Student Enrollment in Academic Session 2018 and 2019 131 Table 12(j): Province-wise Details of Student Enrollment 131 Table 12(k): Level-wise Details of Students Enrollment 132 Table 12(l): Province-wise Net Student Enrollment 133 Table 12(m): Details of Girls and Boys who Passed SEE of 2017 and 2018 (General) 134 Table 12(n): Province-wise Details of SEE (earlier SLC) Results (Technical) 134 Table 12(o): Details of Girls and Boys who Passed SEE of 2017 and 2018 (Technical) 135 Table 12(p).

9 Indicators Related to Health Sector 136 Table 12(q): Details of Health Institutions, Hospital Beds and Human Resources 136 Table 12(r): Province-wise Health Service Benefitted Population 137 Table 12(s): Extended Immunization and National Polio Vaccine 138 Table 12(t): Free Health Care Program 140 Table 12(u): Deprived Citizen Health Care 141 Table 12(v): Details of Service Recipients from Rehabilitation Centers 142 Table 12(w): Number of Lost Children 143 Table 12(x): Status of Basic Drinking Water and Sanitation 144 Table 12(y): Vital Registration 146 Table 12(z): Details of Listed Workers and Employers 147 Table 12(aa): Distribution of Social Security Allowances 147 Table 13(a): Status of Private House Reconstruction 149 Table 13(b): Status of Reconstruction of Damaged Public Infrastructures 150 Table 14(a): Male and Female Civil Servants as per Their Service Group 153 Table 14(b): Candidates Recommended Through Open and Inclusive Advertisement 154 Table 15(a): Foreign Employment and Remittances Inflow 157 List of Charts SN Descriptions Page Chart 1(a): Global Economic growth Rate 2 Chart 1(b): Comparative Status of Inflation in Nepal, India and China 4 Chart 1(c): Gross Domestic Product (GDP) growth Rate 5 Chart 1(d): Structure of GDP 5 Chart 1(e): Sectoral Contribution to GDP growth 6 Chart 1(f): Structure of Consumption 6 Chart 1(g): Gross Domestic Savings and Gross National Savings 7 Chart 1(h): Investment ()