Inflation outpaces government target

The consumer price rise has outpaced the government’s target, though budget has vowed to tame inflation at 6 per cent in the current fiscal year 2019-20.
According to ‘Current Macroeconomic and Financial Situation of Nepal – based on three months’ data of 2019-20 – released by the central bank today, the average inflation, as measured in consumer price index (CPI), stood at 6.44 per cent in the first three months of the current fiscal year.
According to the central bank data, the year-on-year consumer price inflation jumped to 6.21 per cent in mid-October 2019 compared to 4.68 per cent a year ago. “Food and beverage inflation stood at 7.04 per cent whereas non-food and service inflation stood at 5.55 per cent in the first quarter of the current fiscal year,” it reads, adding that vegetable inflation rose by 16.83 per cent, while meat and fish prices jumped by 8.31 per cent.
The rising consumer prices in India has added the inflationary pressure to domestic market as Nepal imports everything including inflation from India. The consumer price inflation has reached a 16-month high of 4.62 per cent in India.
Likewise, rising salary and wages have also driven up inflation in recent months. “The year-on-year salary and wage rate index increased by 12.07 per cent in the first quarter compared to 8.73 per cent a year ago,” the report reads, adding that salary index and wage rate index increased by 13.56 per cent and 11.67 per cent, respectively.

Inflation soars to 6.2 per cent

Inflation has started to soar suddenly in the last months of the last fiscal year 2018-19.
According to 'Current Macroeconomic’ of eleven months' of the last fiscal year 2018-19 released today, the inflation, as measured through the consumer price index (CPI), reached 6.2 per cent in mid-June from 4.1 per cent a year ago.
Inflation went up by 5.3 per cent in the last month of the same fiscal year. “Inflation expectation, increment in wages, and price rise in India accelerated inflation in the review period.”
According to the central bank data, the salary index and the wage rate index increased by 6.6 per cent and 10.3 per cent, respectively in the review period.
The food and beverage inflation rose to 6.7 per cent in mid-June 2019 from 3 per cent a year ago. Prices of cereal grains and their products rose by 6.7 per cent, meat and fish by 7.6 per cent, and vegetables by 14.6 per cent, according to the central bank data. “The non-food and service inflation stood at 5.7 per cent in mid-June 2019 compared to 5 per cent a year ago.”
Likewise, clothes, footwear, housing and utilities inflation rose by 7 per cent while transportation inflation went up by 4.7 per cent, according to the the Nepal Rastra Bank (NRB).
The Kathmandu Valley witnessed 7.1 per cent inflation followed by 6.5 per cent in the mountain, 5.8 per cent in the Terai, and 5.7 per cent in the hilly regions, the report revealed, adding that these regions had witnessed 3.1 per cent, 6.4 per cent, 4.2 per cent and 4.9 per cent inflation, respectively in the corresponding period of the previous year.

Nepal ranks 124 in corruption perception index

Despite a stable and strong government – in the history of the country – Nepal failed to crack whip on corruption. "Nepal climbed two points to 124 in the Transparency International's annual Corruption Perception Index-2018 from 122 last year among the 180 countries, though it has equal score compared to last year," according to a report released today by the Transparency International Nepal (TI Nepal).
Nepal's position has stayed the same as there was no headway to reduce corruption this year, the CPI-2018 report reads, adding that after the elections of 2017, corruption in the public sector, businesses and by government officials continue to plague the country.
In South Asia, Nepal ranks the third most corrupt country as Bhutan – ranked at 25 – is the lease corrupt country followed by India (ranked 78), Srilanka (at 89), Pakistan (at 117), Maldives (at 124), Bangladesh (at 149) and Afghanistan at 172.
The CPI measures the extent of corruption within a country on a scale ranging from zero to 100. Countries securing higher scores are rated as the least corrupt and those with low scores are perceived to be the most corrupt. The annual Index is generated based on surveys conducted by the World Bank, World Economic Forum, Global Insight, Bertelsmann Foundation, World Justice Project and Varieties of Democracy (V-DEM).
TI has been publishing the report since 1995 but Nepal was included in the CPI report from 2004 AD.
"Two third of the countries – in the report – have scored below 50 with an average score of 43," according to the report. The CPI 2018 draws on 13 surveys and expert assessments to measure public sector corruption in 180 countries and territories. Since 2012, only 20 countries have significantly improved their scores, including Estonia and Côte D’Ivoire, and 16 have significantly declined, including, Australia, Chile and Malta.
"The inability to control corruption has threatened democracy across the world," it further reads, adding that highly corrupt countries are found to be repressive and authoritarian and curtail democratic practices. "Likewise, in lesser corrupt countries, there is rule of law, independent monitoring agencies, free press, and aware citizenry."
The CPI 2018 has also revealed that the continued failure of most countries, including Nepal, to significantly control corruption is contributing to a crisis of democracy around the world.
"With many democratic institutions under threat across the globe – often by leaders with authoritarian or populist tendencies – we need to do more to strengthen checks and balances and protect citizens’ rights,” managing director of TI Patricia Moreira said in a press release. "Corruption chips away at democracy to produce a vicious cycle, where corruption undermines democratic institutions and, in turn, weak institutions are less able to control corruption,” she added.
Transparency International has called on all governments to strengthen the institutions responsible for maintaining checks and balances over political power, and ensure their ability to operate without intimidation, close the implementation gap between anti-corruption legislation, practice and enforcement and support a free and independent media, and ensure the safety of journalists and their ability to work without intimidation or harassment to make real progress against corruption and strengthen democracy around the world.
Denmark – with a score of 88 – is the least corrupt country in the world, whereas Somalia – with a score of 10 – is the most corrupt country in the world followed by New Zealand – with a score of 87 – and Nepal joins the club of 124th position with Djibouti, Gabon, Kazakhstan and Maldives.
"The score received by Nepal on the index suggests that the situation of corruption is worrisome," TI-Nepal press note reads.

Nepal third most corrupt country in South Asia

The Corruption Perception Index (CPI) 2016 – released today by Transparency International (TI) – has shown that Nepal is the third most corrupt country in South Asia after Afghanistan and Bangladesh.
Among 176 countries ranked on the CPI 2016, Nepal has been placed at the 131st position with a score of 29. With a score of 27, Nepal was ranked 130th among 168 countries on CPI 2015, according to the global anti-corruption watchdog.
With increasing corruption in the country, Nepal has dropped one spot down to 131st position compared to last year though Nepal gained two points in this year’s index from 27 in 2015.
TI Nepal chapter attributed the slip in Nepal’s position to ineffective mechanisms put in place to curb corruption. The corrupt leapt like a rabbit while the agencies responsible for curbing corruption slow-paced like a tortoise,” said TI Nepal chapter chairman Shree Hari Aryal at a press meet today.
With a score of 65, Bhutan is ranked 27th whereas with a score of 40, India has been ranked 79th. Likewise, Maldives and Sri Lanka are at the 95th position. With a score of 32, Pakistan is ahead of Nepal on CPI 2016 at the 116th position.
According to CPI 2016, New Zealand is the least corrupt country while Somalia is the most corrupt country in the world. According to the report, Denmark and New Zealand are at the top of the charts as the least corrupted country with 90 points followed by Finland, Sweden and Switzerland with 89, 88 and 86 points respectively. "But, Somalia is the most corrupted country and lies at the bottom of the table with only 10 points."
According to the TI, unaccountable governments, lack of oversight, insecurity and shrinking space for civil society, pushing anti-corruption action, high-profile corruption scandals, in addition to everyday corruption issues, undermined public trust in government and the benefits of democracy and the rule of law were among the indicators to determine the position.

Nepal 15th most corrupt country in the world

Nepal is 15th most corrupt country in the world, according to Transparency International (TI).
According to the Corruption Perceptions Index (CPI) 2015 published by TI today, Nepal is the 15th most corrupt country globally on the basis of score, and 38th on the basis of ranking, it said, adding that Nepal is also third most corrupt in South Asia, after Afghanistan and Bangladesh.
Nepal with a score of 27 – out of 100 – ranks in 130th position among the 168 countries.
Nepal’s image as one the most corrupt countries in the world has taken a further beating as the country has slipped by four positions from last year, states the report titled 'Corruption still rife but 2015 saw pockets of hope'. Last year Nepal was placed 126th with a score of 29. Bhutan – the least corrupt country in the region – ranks 27 with a score of 65.
According to the report, overall weak governance and politics has dragged Nepal down.
Bhutan – the least corrupt country in the region – ranks 27 with a score of 65. In South Asia, India (76th position with a score of 38) ranks second – after Bhutan, Sri Lanka third Sri Lanka (83rd position with a score of 37) and Pakistan (117th position with a score of 30) ranks fourth, followed by Nepal, Bangladesh (139th position with a score of 25) and Afghanistan (166th position with a score of 11), states the report that has not listed Maldives in the index.
Nepal’s slip in ranking in the CPI has been attributed largely to public servants’ abuse of authority for personal gains and weak control over public servants.
“The survey shows action taken against public servants involved in abusing authority was weak,” said TI-Nepal’s president Bharat Bahadur Thapa, while releasing the CPI report in Kathmandu. “It indicates strong inclination among civil servants towards abusing authority for personal gains."
The performance of all the 3 state organs – judiciary, bureaucracy and legislature – has been reflected poorly in the TI survey. "It demonstrates government’s total indifference towards fighting corruption," Thapa said, adding that the rare commitments made by the government to adopt zero tolerance on corruption proved nothing but lip service.
Grand corruption is the abuse of high-level power that benefits the few at the expense of the many, and causes serious and widespread harm to individuals and society, the TI report reads, adding that it often goes unpunished. "Nepal continues to perform poorly and has been one of the most corrupt countries."
Conflict and war, poor governance, weak public institutions like the police and the judiciary, and a lack of independence in the media characterise the lowest ranked countries like Nepal.
Similarly, top performers share some key characteristics like high levels of press freedom; access to budget information so the public knows where the money comes from and how it is spent, high levels of integrity among people in power and judiciaries that don't differentiate between rich and poor and are truly independent from other parts of government," the report states.
The annual survey by the Berlin-based watchdog said the Corruption Perceptions Index (CPI)  measures the extent of corruption within a country, on a scale ranging from zero to 100. Countries securing higher scores are rated as the least corrupt and the low scorers are perceived to be the most corrupt. Countries with a score below 50 are perceived as highly corrupt and those that secure 100 are the cleanest, according to TI. Among the lowest 38 countries most of the countries scores are equal making Nepal 15th most corrupt country in the world. Cameroon, Iran, Nicaragua, Paraguay and Ukraine also have scored equal to Nepal, and are 15th most corrupt countries on the basis of score.
Controlling corruption in Nepal remained a herculean task, with the anti-graft body officials themselves have been caught in bribery scandals and commissioners found taking dual state facilities. On top of that, there have been widespread allegations that the anti-graft body has been protecting the corrupt state oil monopoly as the Nepal Oil Corporation is involved in institutional corruption largely supported by the CPN-UML president and Prime Minister K P Oli, UCPN-Maoist supremo Puspa Kamal Dahal 'Prachanda', and the anti-graft agency's chief.
Experts see this grim situation, despite having 16 anti-corruption agencies including Commission for the Investigation of Abuse of Authority (CIAA), as a systematic breakdown of rule of law. Nepal has broken the record of 2011, when it was ranked 154th among 182 surveyed countries, with a score of 2.2 on a scale of 0 to 10. Nepal last year was ranked 126th, out of 175 countries surveyed, with a score of 29.
A country's score can be helped by open government where the public can hold leaders to account, while a poor score is a sign of prevalent bribery, lack of punishment for corruption, and public institutions that don't respond to citizens' needs. The Corruption Perceptions Index (CPI) is based on expert opinions concerning public sector corruption.
Nepal has failed to improve either its country-wise ranking or its score in the index which shows Denmark to be the least corrupt country with a score of 91. Denmark (score 91), Finland (score 90), Sweden (score 89), New Zealand (score 88) and the Netherlands (score 87) are the five best performers, respectively, whereas Somalia, North Korea, Afghanistan, Sudan and South Sudan are the worst performers.
Afghanistan ranks as the third most corrupt country globally after North Korea and Somalia,  and as the most corrupt country in South Asia, the report further shows.
The big decliners in the past four years include Libya, Australia, Brazil, Spain and Turkey. The big improvers include Greece, Senegal and the UK.
Corruption can be beaten, if we work together, the TI report has said, adding, "To stamp out the abuse of power and bribery and shed light on secret deals, citizens must together tell their governments they have had enough."
"The 2015 Corruption Perceptions Index clearly shows that corruption remains a blight around the world," said chair of TI José Ugaz. "But 2015 was also a year when people again took to the streets to protest corruption," he said, adding that people across the globe sent a strong signal to those in power: it is time to tackle grand corruption.

A year of disaster and depression

Massive disasters, lop-sided development strategy and economic depression are the buzz words for remembering the year 2015. The year will go down in history as the year that exposed policy makers, politicians and bureaucrats for their incompetency and visionlessness. The year again proved that Nepali political parties are 'economically illiterate', despite their tall talk of economic revolution.
The year 2015 was punctuated by the devastating earthquakes of April 25 and May 12 – that flattened over a million houses, including public and private – and the subsequent aftershocks.
The government prepared a Post-Disaster Needs Assessment (PDNA) and organised the International Conference on Nepal's Reconstruction (ICNR), where development partners generously committed Rs 401 billion for the country's reconstruction. The PDNA estimated a need of Rs 669.5 billion for funding reconstruction of damaged public infrastructure, including roads, health posts, government schools and utilities; historical and cultural heritage sites; and private sector infrastructure; and for compensation and other forms of support to the public. The devastating earthquake damaged Rs 517 billion worth of assets, the report stated, projecting economic growth to drop to around half the government's target of 6 per cent.
Though the formation of Nepal Reconstruction Authority (NRA) was expected to create huge employment and kick-start the economy through massive capital expenditure, political wrangling delayed the formation. Nine months after the quakes, the year is going to end without having seen a single physical infrastructure being reconstructed.
Moreover, the economy that was slowly recuperating from the earthquakes started crumbling again after the promulgation of the new Constitution on September 20. Against the popular expectation that the Constitution would pave the way for a prosperous Nepal, unrest in the Tarai-Madhes – supported by the Indian blockade – shook the economy to its foundations.
Agitations by the Tarai-Madhes centric political parties and the fallout on the economy not only exposed the successive governments and the political parties for their lop-sided development planning and lack of vision but also pulled economic growth down into negative territory.
The central bank, in its report, 'Impact of India's unofficial blockade on Nepal's economy', projected that economic growth would be negative or at best remain below 2 per cent. The Finance Ministry, in its White Paper on the current economic status, seconded the central bank's projection.
Likewise, the central bank also warned of stagflation, as consumer prices shot up by more than 10 per cent in the fourth month of the current fiscal year of 2015-16, while economic growth is expected to drop to its lowest in around one-and-a-half decades, coupled with a high level of unemployment.
But, according to senior economist Prof Dr Bishwhambher Pyakuryal, the country is heading towards hyperinflation. "Hyperinflation occurs when a country experiences very high and usually accelerating rates of inflation, like the current market prices, rapidly eroding the real value of the local currency and causing the populace to minimise their holdings of local money," he said, adding that people normally switch to holding relatively stable foreign currencies. "Under such conditions, the general price level within an economy increases rapidly as the official currency quickly loses real value."
Similarly, the Tarai-Madhes unrest has forced some 2,200 industries to close and some 220,000 people have become unemployment, according to the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). People lost their incomes in the last four months – which is severe – due to the Tarai-Madhes unrest, unlike the earthquakes that has destroyed assets.
The prolonged strikes in the Tarai-Madhes supported by the Indian embargo have not only created shortages of essential supplies including petroleum products but also encouraged the black market and hoarding, making the lives of the people more difficult still. The central bank has already admitted that it cannot crack the whip on inflation as this is not increasing due to any monetary cause.
Low production and falling imports have pushed the market prices up to double digit, exposing weak governance, he added.
Government inefficiency has also been exposed in the failure to spend the development budget. According to the Finance Ministry, the government has been able to spend only 6 percent of the capital expenditure in five months of the current fiscal year, which is going to hit the performance of the national pride projects not only because they are going to be delayed but costs also will escalate, according to Pyakuryal.
Time and cost overruns will hit the social sectors like health and education, he said, adding that the resource allocations for these sectors will also decline due to low revenue generation. "It will also hit the government's target of graduating Nepal from the current status of Least Developed Country (LDC) to a developing country by 2020."
According to the Finance Ministry, the government has lost Rs 50 billion in revenue in the last three months.
The government has also made the year 2015 more memorable as the poverty head count is going to increase and the government-promoted black economy will further expands weakening democracy in the coming years.

Black economy expands
The year 2015 will also be remembered for the black economy and market distortion with the direct involvement of the government. Weak governance and lack of willpower to enforce the law are encouraging the black economy. There is growing criminalisation in society since almost the entire official machinery is involved in illegalities. Businessmen and politicians use the police and the bureaucracy to engage in illegality. When the latter get the license to commit illegality, they do it for their own ends also, that is, for making money. The result is that the force responsible for maintaining law and order, i.e., the police, is often a party to the illegality. The nexus among entrepreneurs, bureaucrats and politicians has promoted the black economy in recent months.
Police arrested Nepal Oil Corporation (NOC) Thankot depot chief Rabin Sharma and joint secretary at the Ministry of Environment Ram Adhar Shah – who is also former chief of Nepal Bureau of Standards and Metrology – for their involvement in the black market in fuel. This is only the tip of the iceberg. The controversial firm Birat Petroleum has openly sold petrol at inflated prices, without the government's approval. The government fixes the price and quality of fuel before it is sold to consumers. But Birat Petroleum sold petrol directly from its tanker at Dilli Bazaar, Kalikasthan without fulfilling the legal procedures. This would not have been possible without high-level political patronage. The current market-distorting scenario is a clear indication that the black economy is going to cause wide-ranging damage to not only economy but also to the democracy in the long run.
Likewise, corruption is yet another plague that is pushing the country towards an underground economy. The public has little choice in the matter since almost all the political parties have been caught indulging in corruption. According to a Transparency International (TI) report, Nepal is ranked 139th out of 174 nations in the Corruption Perceptions Index (CPI). The TI report has also exposed the increasing inefficiency of the bureaucracy, something that is costing the country dear.
An economy that has the potential of growing at 7 percent per annum has been crawling at an average of 3 percent per annum in the last decade due to black economy. The year 2015 will, thus be remembered as the year that promoted black economy as the Prime Minister KP OLi and his cabinet is full of ministers of suspicious back-ground. The 40-member cabinet is also adding more pressure on state coffer for their salaries, when the revenue generation is going down.
Likewise, the year 2015 is going to pull down economic growth to almost negative but people are making money through smuggling and black marketing. The unemployed youths of Tarai-Madhes are earning handsome money selling fuel they bring from across the border. The impact of drop in fuel import from India could not be seen as the people are riding on fuel bought in black in inflated price. The government is losing Rs 3 billion – in revenue per month – that it could have earned from Nepal Oil Corporation (NOC) – if NOC had been able to import fuel through the formal channel.
The black economy has pervaded life at the social, political, economic and cultural levels alike and individuals are overnight able to buy houses, land or cars with their ill-gotten gains.

Increasing poverty
The increase in poverty in a very short span of time – eight months from April to December in 2015 – is going to render the country the poorest in the South Asian region.
According to the PDNA report, the devastating earthquakes of April and May will end up pushing an additional 2.5 per cent to 3.5 per cent into poverty trap. It translates into at least 700,000 additional poor in the country of 16.5 million population.
Similarly, the Tarai-Madhes unrest and the Indian blockade have pushed another 4 per cent of Nepalis into the poverty trap, which translates into some 800,000 additional poor due to losses in agriculture, industry and service sector. The protracted political transition in the last four months made people in Tarai-Madhesh lose their employment and incomes.
Currently, one in four Nepalis is under the extreme poverty line, according to the Central Bureau of Statistics (CBS). But the number will rise and one in every three Nepalis will be poor, thanks to 2015.

Adios 2015!!!

A Nepali spends Rs 176 a day: Household Survey

A Nepali spends an average of Rs 176 but earns Rs 205 per day, according to a survey.
The fifth Household Survey conducted by the central bank revealed that daily savings of Nepalis stand at only Rs 29.

The outcomes of survey unveiled in Kathmandu today shows a Nepali family spends an average of Rs 25,928 every month. Average monthly earning of Nepali family is Rs 30,121.
A Nepali family has an average of 4.9 members, according to the census.
The spending pattern of Nepalis also revealed that they spend more on consumption compared to non-consumption. "A family spends Rs 23,883 per month on consumption," the survey reported, adding that their spending on non-consumption comes to an average of Rs 2,045. "The spending pattern of the rural and urban populace is not very much different in non-consumption."
The rural populace spends Rs 2,024 per month on non-consumption, whereas the urban populace spends Rs 2,063, according to the survey. However, rural families spend Rs 20,904 per month on consumption, compared to Rs 26,411 by urban families. The total spending of an urban family comes to Rs 28,474 per month, whereas a rural family spends a total of only Rs 22,928, making a difference of Rs 5,546 per family spending per month between urban and rural family, the survey revealed.
The survey, which is conducted every 10 years – by the central bank – to study income and expenditure pattern, has used Acquisition Approach. It has also included domestic production, barter, and gifts and service under consumption of goods and services.
Both the urban and rural family spends the most on food and non-alcoholic drinks, whereas they spend the least on alcohol, cigarette, and tobacco. The spending on house rent, water, gas, electricity and other fuels comes second both for urban and rural families.
Meanwhile, the central bank has also changed the weightage of food and non-food items for the calculation of Consumer Price Index (CPI) that is used to reflect inflation. The new weightage calculation will come into effect from the current fiscal year, Nepal Rastra Bank (NRB) said.

Nepal third most corrupt country in South Asia: Transparency International

Nepal has slipped down from last year's rank – to become third most corrupt country in the South Asia – in the Corruption Perception Index (CPI) 2014 published by Transparency International, today.
Nepal has been ranked 126th this year with 29 score out of 100 among 175 countries, according to the Transparency International. The country was ranked 116th position in 2013 with a score of 31 among the 177 countries.
Bhutan – ranked 30th – maintained its clean image and succeeded in remaining on top among South Asian countries with 65 points. Last year, Bhutan – with 63 points – was ranked 31st among 177 countries.
Likewise, Bhutan has emerged as the least corrupt nation in South Asia securing 65 score behind India (rank 85) and Sri Lanka (rank 85) scoring 38 each. Afghanistan improved its score – by 4 points – this year, but it has remained on bottom among the South Asian countries.
The 20th edition of the Corruption Perception Index ranked Bangladesh at 145th and Pakistan at 126th position.
The  Corruption Perception Index scores countries on a scale of zero to 100, with zero indicating high levels of corruption and 100, very clean.
More than two thirds of the 175 countries in the 2014 Corruption Perception Index have scored below 50, according to the Transparancy International that has placed Denmark on top of the chart with a score of 92, whereas North Korea and Somalia share last place, scoring just eight.
"The 2014 Corruption Perceptions Index shows that economic growth is undermined and efforts to stop corruption fade when leaders and high level officials abuse power to appropriate public funds for personal gain,” said chair of Transparency International José Ugaz, in his statement.
The fight against corruption has been a big challenge to developing countries, including Nepal, over the years, said chair of Transparency International Nepal Chapter Bharat Bahadur Thapa, releasing the Transparency International report in the capital today.
"We urge the government and other stakeholders to take initiatives to control corruption," he said, adding that the country has failed to control corruption since it was listed in the Corruption Perceptions Index some 11 years ago. "The report covers not only the corruption in public sector but also in the private sectors."
He also regretted that stakeholders including the government never took the Transparecny report seriously.
The Nepal report is based on the separate surveys conducted by five international organisations, Bertelsmann Foundation, World Bank, World Economic Forum, Global Justice Project and Global Insight.
Bertelsmann Foundation conducted the survey on action against those abusing authority, World Bank conducted survey on status of accountability and corruption status, World Economic Forum carried out survey on paying bribes to get professional and public services, whereas Global Justice Project surveyed on the abuse of authority by the government, judiciary and lawmakers for fulfilling vested interests. Likewise, the Global Insight had come out with survey on the impact of corruption in business sector.


South Asian countries – Rank
Bhutan – 30
India, Sri Lanka – 85
Nepal, Pakistan – 126
Bangladesh – 145
Afghanistan – 172

Household budget survey begins today

The central bank is starting the fifth Household Budget Survey from tomorrow.

The central bank has been conducting such survey every 10 years to update and revise weightages of goods in the basket for National Consumers Price Index (CPI) to captures the overall price situation of the country.

The survey takes into account the level and sources of income and expenditure patterns of households. The revised weighting factors of the CPI can only give the real picture of the inflation in the country. The central bank has been publishing inflation based on CPI on the monthly basis.

Consumption pattern of households changes frequently due to various reasons and the household budget survey will help find how people spend and earn in the interval of a decade.

The central bank has identified some 84 market centers from 55 districts in the five development regions for the survey that will take a sample of 8,028 households.

The last survey was conducted in 2005-06. 

New landowners increasing in Kathmandu

Despite dust, drinking water scarcity and dogging price hike Kathmandu continues to lure more people from across the country.

In the current fiscal year 2013-14, the only metropolis of the country has added some 1,074 new land owners, according to the records of Dillibazar Land Revenue Office that looks into only one section of the Kathmandu metropolis.

The office has also mobilised Rs 536.77 million in the current fiscal year 201-14, the office informed, adding that the office provides services to around 500 service seekers everyday in an average.

Likewise, Lalitpur Land Revenue Office also mobilised Rs 1.36 million revenue in the current fiscal year.

Inspecting both the offices on Friday, secretary at the Office of the Prime Minister Krishna Hari Banskota asked the offices to provide efficient services to the service seekers, and provide compensation, if the employees delay their work.

After complaints from the people that these offices do not provide service efficiently, a committee has been formed under Baskota to monitor these offices.

Advising the employees to restrict the middlemen from entering the offices, he asked the employees to maintain professional ethics, not get involved in corruption and make the service seekers feel that they are taken well care. "Though Nepal has bettered in corruption perception report and jumped up to 117^th position this year from last year's 139^th the role of government employees must be aware of their duty," he added.

Employers, employee agree on Rs 8,000 minimum salary

Employers and employees have agreed to hike the basic salary by 43.66 per cent and dearness allowance by 9.44 per cent making it a total hike of 29 per cent in minimum salary.

The minimum salary will be Rs 8,000 and daily wage will be Rs 318 from the current Rs 6,200 and Rs 231, respectively, according to president of General Federation of Nepalese Trade Unions Bishnu Rimal.

The basic salary will be increased to Rs 5,100 from the current Rs 3,550 and dearness allowance to Rs 2,900 from Rs 2,650, making it a total of Rs 8,000 salary from the current salary of Rs 6,200, he said, adding that the daily wage has been increased by 37.66 per cent to Rs 318 from the current Rs 231.
However, the government is yet to announce it.

Though some trade unions have been asking for Rs 12,500 — double the current salary of Rs 6,200 — and others have been asking for Rs 15,000 minimum salary, claiming that it is insufficient to survive in towns and its suburbs with the present salary and wage structure, the tripartite meeting — including government, employers and employees — yesterday agreed on the said hike.

Earlier, employers — like what employees have been asking — were ready to increase the salary on the basis of annual Consumer Price Index (CPI) published by the central bank. According to law, the minimum salary and wages have to be increased every two years.

Last time, on March 24, 2011, the tripartite Minimum Wages Fixation Committee had fixed a minimum salary of Rs 6,200 and a daily wage of Rs 231.

However, employers have asked for an automatic hike in minimum salary and wages on the basis of inflation rate every two years through the Financial Act that can guarantee the rights of the employees and clear the present confusion in the sector.

Employers have been asking for a scientific method for salary and wage hike — based on annual inflation rate published by the central bank — that will end confusion and help employers concentrate on business expansion rather than having to fear every two years that employees might go on strike.

The government's move to automatically revise minimum salary and wage every two years from the beginning of the new fiscal year will give political parties little room for bickering in the industrial sector and disturb the business environment.

Meanwhile, a splinter of UCPN-Maoist, CPN-Maoist affiliated trade union has objected to the minimum salary and wage despite the three key trade unions associated with Joint Trade Unions Coordination Centre — Nepal Trade Union Congress-Independent, All Nepal Trade Union Federation, and General Federation of Nepalese Trade Unions — employers and the government agreeing on it.

They have asked the government to fix a minimum salary of Rs 15,000 that will be sufficient for a family to live in a town, apart from social security schemes including accidents, health care and maternity, and pension.

Employers want Financial Act to include automatic hike, based on CPI, every two years

Employers have suggested the government to include minimum salary and wage hike on the basis of inflation every two years automatically, in the Financial Act that can guarantee the rights of the employees too.

If the government publishes the automatic revision provision of minimum salary and wage every two years from the beginning of the new fiscal year, there will be little room for political parties and trade unions affiliated to them for political bickering and disturbing the business environment, they suggested, adding that the employers can also have predictability in their business and investment plan.

They — like what employees have been asking — are ready to increase the salary on the basis of Consumer Price Index (CPI) published by the central bank but still some trade unions are not happy.
The scientific model of the automatic revision could be discussed and brought in the Financial Act along with the budget, for a peaceful industrial environment, according to them.

"We have no objection to a scientific method for salary and wage hike based on inflation published by the central bank," according to a member of the Minimum Wages Fixation Committee that has been holding marathon rounds of talks to finalise the minimum salary and wage.

Earlier, the three key trade unions associated with Joint Trade Unions Coordination Centre — Nepal Trade Union Congress-Independent, All Nepal Trade Union Federation, and General Federation of Nepalese Trade Unions — had asked for an inflation-based salary hike, besides the minimum wage criteria for workers.

Employers have agreed to increase the minimum salary and wage by Rs 1,200 making it Rs 8,400 on the basis of around 10 per cent inflation — according to Nepal Rastra Bank (NRB) — every year in the last two years.

The minimum monthly salary of Rs 6,200 and daily wage of Rs 231 was fixed on March 24, 2011, by the tripartite Minimum Wages Fixation Committee.

However, some trade unions have been asking for Rs 12,500 — double the current salary of Rs 6,200 — and others have been asking for Rs 15,000 minimum salary, claiming that it is insufficient to survive in towns and its suburbs with the present salary and wage structure.

They have asked the government to fix a minimum salary that will be sufficient for a family to live in a town, apart from social security schemes including accidents, health care and maternity, and pension.