BaYu Sambaad: Centering children and youth in climate agenda

More than 100 children and young people from across Nepal convened in Kathmandu today for the Balbalika tatha Yuwa (BaYu) Sambaad, a children and youth-led national dialogue on climate action ahead of the international Sagarmatha Sambaad. With nearly half of Nepal’s population under the age of 24, the event underscored a powerful reality: children and youth are on the frontlines of the climate crisis, and they are calling for concerted and urgent climate action.

Jointly organised by the Government of Nepal and United Nations Nepal including UNICEF, FAO and UNDP with a consortium of youth networks, namely Nepalese Youth for Climate Action, Mountain Youth Hub, World Food Forum Nepal, Global Youth Biodiversity Network and Clean Energy Nepal, the event placed children and young people at the centre of the climate conversation. Representatives from the government, civil society, development partners, private sectors, media and climate experts joined the dialogue to listen to, learn from and stand with young people.

“Climate change is not a future concern, it is today’s reality”, said 20-year-old Nischal Bhatt. “We, young people, have the passion and power to bring change," he said, adding," We urge for an enabling environment where we can contribute to a climate just and resilient society”.

Despite contributing the least to climate change, children and youth bear the brunt of its consequences from exposure to extreme heat, heavy rainfall, climate induced disasters, polluted air and water, to increased health risks, poor nutrition and learning disruptions. In Nepal, climate change has been linked to a rise in vector-borne diseases, food insecurity and school closures, all challenges that disproportionately impact children.

“Every child has the right to grow up in a safe and healthy environment. Yet, climate change threatens children’s rights every day,” said Dr Alice Akunga, United Nations Resident Coordinator to Nepal ad interim. “But today’s Sambaad proves that children and young people are not just victims - they are powerful agents of change. Their voices must shape our climate response at every level.”

The BaYu Sambaad featured an exhibition of child- and youth-led climate solutions, video show, expert sessions on climate resilience, and two intergenerational panel discussions. The first explored the impact of climate change on essential services like education, health and water . The second aligned with the themes of the upcoming Sagarmatha Sambaad – scheduled from May 16 to 18 – highlighting the connections between climate change, mountain ecosystems and the future of humanity. The Sambaad also included testimonies of children, adolescent and youths from across the Nepal.

A key outcome of the BaYu Sambaad is a declaration developed by the participating children and youth, outlining their demands, commitments and proposed actions for a more climate-resilient Nepal. This declaration will be submitted to the Sagarmatha Sambaad Secretariat ahead of the Sagarmatha Sambaad, ensuring the perspectives of children and young people directly inform Nepal’s climate policy, including the development of the third Nationally Determined Contribution (NDC) and preparations for COP30.

“Nepal is proud to be a global leader in putting youth and children at the center of our climate commitments,” said minister of Forests and Environment Ain Bahadur Shahi Thakuri, chief guest at the event. “Our second NDC already reflects this, and is among the most inclusive globally in terms of the needs of children and youth, and we are committed to making NDC 3.0 even more so," he said, adding that the BaYu Sambaad is an essential platform to translate  young people’s voices into action – in policy, in practice, and in our path toward a greener, more resilient Nepal.

Chair of the programme Dr Rajendra Prasad Mishra, Secretary of the Ministry of Forests and Environment, praised the initiative led by children and young people and stated that the conclusions from the BaYu Sambaad would guide Nepal’s policies and plans.

Provinces press prime minister over unmet demands for key powers

The chief ministers of seven provinces jointly called on the federal government to implement the 17-point charter of demands they presented last year.

Expressing their concerns at the meeting of the National Development Problem Solving Committee led by Prime Minister KP Sharma Oli today, they asked to fulfill the demands which are a must for the provinces’ effective functioning.

Last July, a delegation of seven chief ministers had presented their 17-point demands including deployment of civil servants, promulgation of laws, and revenue sharing.

“We jointly called for implementing the 17-point demand, most of which remain unimplemented,” Madhesh Province chief minister Satish Kumar Singh said, adding that their key and longstanding demands include adjustment of Nepal Police in provincial police force and promulgation of the Federal Civil Service Act as in the absence of the necessary law the smooth functioning of the provinces have been regularly under question. "Although maintaining law and order falls under the exclusive authority of the provinces, successive federal governments have delayed the adjustment of the police, and promulgation of subsequent laws.

The provinces also demanded transferring ownership of land and buildings being used by provincial entities to the respective provinces, and deployment and transfer of the officials in coordination with the provinces. Provinces have been complaining that frequent unconsented transfers of principal secretaries, secretaries and other staff adversely affect their performance.

The chief ministers have been demanding an arrangement to send secretaries by the federal government to the provincial ministries and by chief administrative officers to the local units, with the provinces retaining the ultimate authority to assign them duties. 

Currently, the federal government deploys them directly, which has created problems in the he provincial level.

Since the provinces have been facing unprecedented burdens from natural disasters, the chief ministers demanded urgent support and response from the federal government.

Likewise, delay in promulgation of the remaining federal laws to delegate the exclusive and concurrent authorities to the provinces, as well as amendments to existing laws to ease land acquisition for development projects and establish industrial areas have also hindered the progress of provincial governments.

The chief ministers also asked to amend the Local Government Operations Act to ease revenue sharing from river-based resources between local and provincial governments, and revise the Forest Act to allow them to use national forests. 

The Madhesh government has even filed a writ petition in the Supreme Court demanding authority over forest management, but the case has been pending since long.

The chief ministers have also demanded to repeal of the Urban Area Public Transport (Management) Authority Act-2022 to enable provinces to collect revenues from traffic rules violation.

The chief ministers, during today's meeting, also expressed frustration over delays in obtaining clearance from the forest ministry, which according to them is hindering development efforts of the provincial governments. In response, PM Oli said he too was concerned about the delays in development works due to lack of permit in the use of forest covered areas.

Oli was of the view that concerned agencies with forest should facilitate development efforts while also working to protect forests and environment. Instead they are creating barriers in development efforts, he added.

Oli, on the occasion, also called for running an effective, competent and transparent administration, which can priorities addressing the public grievances.

Human progress needs to be considered with environmental protection: UNDP

 The United Nations Development Programme (UNDP) has underscored the need for redefining human progress that takes into account countries’ carbon dioxide emissions and material footprint on top of traditionally used parameters of human development.

Unveiling the Global Human Development Report (HDR) 2020 today, the UNDP has expressed its concern over widening inequality and environmental challenges that the world is facing while moving forward to achieve human progress. The Covid-19 pandemic is the latest crisis facing the world, but unless humans release their grip on nature, it won’t be the last, according to the report.

“Humans wield more power over the planet than ever before,” UNDP administrator Achim Steiner said, adding that in the wake of Covid-19, record-breaking temperatures and spiraling inequality, it is time to use that power to redefine what is meant by progress, where the carbon and consumption footprints are no longer hidden.

Till the date, the Human Development Index (HDI) considers a nation’s health, education, and standards of living to mark as human progress. But the additional elements – a country’s carbon dioxide emissions and its material footprint – shows how the global development landscape would change if both the wellbeing of people and also the planet were central to defining humanity’s progress.

Currently, the Covid-19 has grappled the world. This has led to more than 50 countries dropping out of the very high human development group, reflecting their dependence on fossil fuels and material footprint. “This shows that no country in the world has yet achieved very high human development without putting immense strain on the planet,” the report reads.

The UNDP has mentioned that it has been projected by 2100, the poorest countries in the world could experience up to 100 more days of extreme weather due to climate change each year, a number that could be cut in half if the Paris Agreement on climate change is fully implemented. “And yet fossil fuels are still being subsidized: the full cost to societies of publicly financed subsidies for fossil fuels – including indirect costs – is estimated at over $5 trillion a year, or 6.5 per cent of global GDP,” the UNDP cited a report published by the International Monetary Fund (IMF).

The Global Human Development Report is a flagship publication of the UNDP. Minister for Foreign Affairs Pradeep Kumar Gyawali launched the report in Nepal, amid a programme.

“For three decades, Human Development Reports have fundamentally shaped the ideas and policy discourse on alternative assessment of development and wellbeing,” he said, awhile launching the report in Kathmandu. “The criteria used for measuring human development have been the basis for advancing social development agenda, including in Nepal,” he said, adding that the contents of the HDR reports have served as useful policy resources for many countries. “Successive human development reports since 1990 have highlighted critical dimensions of human progress and sustainable development, thereby informing, encouraging and assisting the governments and stakeholders to address the impediments in the way of enlarging choices.”

“Nepal strongly supports the implementation of the Paris Agreement and the call to limit global warming to 1.5 degrees,” he said thanking Resident Representative of UNDP in Nepal Ayshanie Labe for the launching ceremony.

Reminding Prime Minister K P Sharma Oli’s address at the climate ambition summit, where he outlined the roadmap for Nepal’s ambition towards a net-zero greenhouse gas emission by 2050, Gyawali said that Nepal submitted it’s updated, more ambitious and progressive Nationally Determined Contribution (NDC-2020). “Nepal has prioritised producing clean and renewable energy as well as promoting e-mobility, low carbon infrastructure and ecotourism.”

By 2030, Nepal aims to maintain 45 per cent of the country’s land under forest cover and aims to extend protected area from 23 per cent to 30 per cent and preserve biodiversity. 

While implementing the NDC, Nepal remains committed to prioritise the issue of gender equality and social inclusion and ensure full, equal and meaningful participation of women, children, youth, indigenous peoples and marginalized communities in all stages of the implementation process.

Asia can lead global transformation towards low-carbon and resilience

Asia-Pacific Climate Week in Bangkok – Thailand (APCW 2019) wrapped up today – with participants agreeing a set of key takeaways on what steps urgently need to be taken for the region to be able to profit from the advantages of the transition to low carbon and resilience and the worst impacts of climate change.
The compelling social and economic reasons to rapidly shift to low-carbon and resilience were outlined by high-level speakers who warned that current levels of ambition to tackle climate change are insufficient, putting the world on a path towards global warming of more than 3 degrees Celsius.
A key takeaway was that Asia-Pacific region can lead the global transformation in line with a 1.5 Celsius, climate resilient world. Holding the global average temperature rise is the central goal of the Paris Climate Change Agreement.
Participants at the gathering agreed that the transformation to low carbon and resilience in Asia can be driven not only by governments, but by dynamic subnational regions and cities, an innovative private sector, political leadership and finance.
Youth groups played an important role at Asia-Pacific Climate Week, engaging with participants and covering the discussions on social media accounts. Over half of the global population of 1.8 billion young people live in the Asia-Pacific region, whose future is at stake.
The messages will be an important input to the Climate Action Summit convened by the UN secretary-general on September 23 in New York. The results will also help build momentum towards the UN Climate Change Conference (COP25) that will take place in Santiago, Chile, December 2-13, 2019.
Countries are currently designing enhanced national climate action plans under the Paris Agreement (Nationally Determined Contribution, or NDCs) and the Summit in New York will be an opportunity for governments and many climate action players to announce new plans and initiatives before the NDCs are communicated to the UN in 2020.
The Bangkok gathering included an ‘NDC Dialogue’ for the Asia-Pacific Region. At the dialogue, government representatives highlighted the importance of providing economic incentives like the creation of quality green jobs, whist ensuring there is a just transition to low carbon, with nobody left behind.
Climate change adaptation planning and finance were a key theme throughout APCW 2019, with a focus on communities and ecosystems that need it most.
On the issue of building resilience to climate change, representatives of indigenous peoples from the Asia-Pacific region and academics as well as other stakeholders with diverse backgrounds engaged at an event where they stressed the need for a shift in mindset in the fight against climate change.
The group proposed concrete pathways to help transform societies to achieve long-term resilience for all. 
Other issues discussed at APCW 2019 were carbon pricing, the enhanced transparency framework, capacity-building and regional climate finance, above all for highly vulnerable nations.
At Asia Pacific Climate Week, work started on a new climate strategy for Indian Ocean Island States to access finance for priority projects, similar to the sub-regional Climate Finance Strategy developed for the four Melanesian island States of Fiji, Papua New Guinea, Solomon Islands and Vanuatu.
The UN Climate Change Secretariat is assisting 10 sub-regions involving 77 countries in Asia Pacific, Africa and Latin America and the Caribbean in preparing strategies to access scaled up climate finance.
APCW 2019 is the third Regional Climate Week to be organized this year, following a Regional Climate Week in Africa in Accra, Ghana in March and a Regional Climate Week in Salvador, Brazil in August. Altogether a total of 10,000 registrations were recorded for the 3 events demonstrating the growing interest for these issues.
Next year a new Regional Climate Week in the Middle East and North Africa region will take place in the United Arab Emirates and will be delivered in collaboration with the World Green Economy Organization (WGEO), the hosting organisation for the UN Climate Change Regional Collaboration Centre based in Dubai, for the MENA region and the South Asian region.

Government to spend Rs 9.96 trillion in next five years

The National Planning Commission (NPC) has projected a total of Rs 9.96 trillion of public spending in the next five years.
The fifteenth five-year plan – recently endorsed by the National Development Council (NDC) meeting – has forecast the capital and recurrent expenditures to remain almost equal in the five year period, departing from the current trend of expenditure where the recurrent budget is more than double the spending toward capital budget, though it can do nothing to improve the government spending capacity. "Out of the total government budget size of Rs 9.96 trillion over the five-year period, Rs 4.596 trillion will be spent as recurrent, while Rs 4.02 trillion will be spent as capital expenditure."
Of the total budget of Rs 1.396 trillion for the current fiscal year, the government has allocated Rs 789 billion for recurrent expenditure while Rs 471 billion for capital expenditure.
The five-year plan – starting from fiscal year 2019-20 to fiscal year 2023-24 – has increased the capital expenditure assuming that the capital spending will increase in next five years as the government prioritises various development projects. The country also plans to graduate to the status of developing country from current least developed country in next five years, according to the five-year plan.
In the next five years, the government will have to spend Rs 1.35 trillion in the fiscal arrangement including investment in public enterprises and debt servicing.
Likewise, the government will be mobilising Rs 7.25 trillion revenue and Rs 1.71 trillion  foreign assistance. "The government is anticipated to raise Rs 996.15 billion in domestic debt to meet the budget deficit," the plan estimated. "The federal government will transfer Rs 1.7 trillion budget to provincial and local governments in next five-year period."
Similarly, the plan projects an investment of Rs 9.25 trillion, of which private sector will pour in 55.5 per cent of investment and government investment at 39.1 per cent, apart from 5.4 per cent investment is expected to come from the cooperative sector.

NDC finalise 15th five-year plan concept paper

With a target to achieve a minimum average economic growth of 9.4 per cent per annum in the next five years, the meeting of the National Development Council (NDC) – chaired by Prime Minister KP Sharma Oli – today endorsed the draft of the concept paper of the 15th five-year plan, starting from fiscal year 2019- 20 to fiscal year 2023-24.
The draft concept paper also reads that contribution of services sector in gross domestic product (GDP) can reach 57.6 per cent by fiscal 2023-24, while the contribution of the agriculture sector and industrial sector in the national GDP can reach 22.1 per cent and 20.3 per cent, respectively. The draft concept paper also has an 'ambitious' targetof raising per capita income to $1,600 by the end of the five-year plan.
The periodic plan also targets to reduce absolute poverty rate to 13 per cent by the fiscal year 2023-24 from current 18.7 per cent and unemployment rate to six per cent from 11.4 per cent. The NPC said that 61 per cent of the total estimated investment should be borne by the private sector and cooper atives. The government will bear the rest of the expenditure, it reads, adding that the private sector needs to invest Rs 5.13 trillion, the government Rs 3.61 trillion and cooperatives Rs497 billion over the five-year plan period.
The government’s long-term plan aims at transforming Nepal into a developed nation by 2043, whereas Nepal hopes to graduate to a middle-income economy by 2030. It reads, adding that the government expects to increase the per capita income to $12,100 per annum, meaning a growth of 12-fold over the next two-and-a-half decades. "The contribution of the manufacturing sector is targeted to increase to 30 per cent to the Gross Domestic Product from the current 14.8 per cent."
Prepared by the National Planning Commission (NPC) and presented at the two-day NDC meeting, the draft of the concept paper of the 15th periodic plan – witnessed discussions among chief ministers, secretaries and other high-level dignitaries yesterday and today.
Endorsement of the draft of the concept paper of 15th five-year plan means that NPC will now present it at the full meeting of NPC incorporating the suggestions from the stakeholders.
Once the draft gets NPC’s nod, it will be presented at the Cabinet meeting for approval and will be implemented from the beginning of fiscal year 2019-20.
Addressing the NDC meeting, Prime Minister Oli said that the 15th five-year plan, unlike previous plans, is a special periodic plan that intends to transform the country’s economy and development.
Likewise, finance minister Dr Yuba Raj Khatiwada urged the NPC to finalise the concept paper and get the Cabinet’s nod as soon as possible so that the government can introduce necessary policies and programmes in the budget based on the vision set by the 15th five-year periodic plan. He also said that the government will rope in private sector to implement the periodic plan.
Following the two-day consultations and discussions over six thematic issues on the concept paper and long-term vision paper among 300 participants, the meeting decided to approve the draft of the approach paper after incorporating 'necessary' suggestions of the participants.

Per capita income to reach $1,400 in five years

The government has projected that Nepal’s per capita income to reach $1,400 by the end of the 15th periodic plan in fiscal year 2023-24.
During the first meeting of the National Development Council (NDC), here today vice chair of National Planning Commission (NPC) Dr Pushpa Raj Kandel said that Nepal's per capital income will increase by $400 in next five years. "The country’s per capita income will increase by seven per cent or $70 to $1,074 in the current fiscal year from $1,004," he said, adding that by the end of fiscal year 2042-43, Nepalis per capita income will reach $12,100.
Speaking at the meeting, finance minister Dr Yubaraj Khatiwada, said that political and social stability can guide the government’s long-term vision to achieve the targeted goal. "We need to improve the implementation capacity that will directly affect per capita income and sustainable development," he said, adding that the government will achieve the targeted goal by accelerating development works of major indicators like rail, roadways, tourism, agriculture and electricity. "The government is however occupied with formulating and amending the necessary laws in the current fiscal year."
Claiming that the government is close to achieving the goals set in current 14th periodic plan the finance minister also said that the next fiscal year will see increment in expenditure with coordination of provincial and local level governments.
Likewise, the government has planned to reduce the unemployment rate by three percentage points from current 11.4 per cent in the next five years. Nepal has also planned to graduate from least developed country (LDC) status to the developing country status by 2022 and to a middle income country by 2030.
Progress in development indicators of the country’s 14th development plan have been more satisfactory compared to those in the past plan periods, according to a report of National Planning Commission.
In the first two years of the three-year plan (fiscal year 2016-17 to fiscal year 2018-19), indicators in agriculture, social development, poverty reduction, access to drinking water, and average economic growth have posted fair progress, it reported, adding that the figures of physical infrastructure is however still bleak. "The review has also stated that the successful election of three tiers of government and formation of a stable government at the center have laid a ground for stability and confidence among investors to invest."
The finance minister, who had portrayed a bad shape of the country’s economy issuing a white paper last year after assuming office, has now portrayed the overall economic indicators to be in the positive direction.
"The average economic growth in the last two fiscal years has been 6.64 per cent, against the target of 6.6 percent," the report added. "“The achievements are the closest to the target after the 8th development plan."
Figure of Human Development Index (HDI), which was targeted at 0.57 has already been achieved, and the index was 0.574 by the end of fiscal year 2017-18. "Likewise, target of life expectancy in the plan period was 72 years, which has reached 70 years at the end of fiscal year 2017-18 and population having access to safe drinking water has already reached 94.9 per cent against the target of 90 per cent."

NPI says concept paper on 15th five-year plan highly ambitious

Nepal Policy Institute (NPI) – an international think tank promoted by NRNA – said that few targets of development set in the periodic plan are overambitious and unrealistic.
Nepal Policy Institute (NPI) — an international think tank — has said that a few targets of development set in the periodic plan are overambitious and unrealistic. "Goals and objectives are set at high levels and are generally without clear, programmes indicators or time lines."
The NPI suggested the National Planning Commission (NPC) that has held a meeting of the National Development Council (NDC) in the capital to finalise the concept paper of the 15th five-year plan (fiscal years 2019-20 to 2023-24) to be realistic in setting of the target.
The NPI has also said that there is no explicit articulation of the external regional and global context and future scenarios in which the vision and plans are set. "The commission has projected income growth of $1,400 by fiscal year 2023-24; $4,100 by fiscal 2030-31 and $12,100 by fiscal 2042-43, which seems rather overambitious or unrealistic to achieve given past performance of the government, including poor capital investment and management," the NPI added.
The whole presentation of the vision and plan is conspicuously silent about migrant workers and remittance, the NPI comment paper on the draft of the 15th five-year plan reads, adding that that the Nepali economy is so heavily dependent on remittance and foreign employment has become the mainstay of income and employment for millions of working age population along with remittance constituting one-third of the nation’s annual budget. "Given the double-digit high economic growth target, there is no explicit recognition or mitigation strategy for the high cost of high growth in terms of unsustainable exploitation and extraction of nature, natural resources, high degree of inequality in the society and deeper socio-political division and unrest,” the NPI statement reads, adding that the concept paper of the periodic plan does not reflect higher-level vision, plan or strategy for gender equality and increased economic participation and leadership of women. "Though Nepal has been suffering from economic dependency with alarming rise in imports of basic food commodities from India, the concept paper of the periodic plan has not emphasised this concern and no remedial mechanism specifically suggested."
The NPI has also suggested the government to give the 15th periodic plan the theme ‘Build, Produce and Manage.'

NDC meets to finalise concept paper of 15th five-year plan

The National Development Council (NDC) meeting – the first one after the country entered into the federal set-up – kicked off today in Kathmandu to give final shape to the concept paper of the 15th five-year plan (fiscal years 2019-20 AD to 2023-24 AD).
The concept paper prepared by the National Planning Commission (NPC) with the government's vision of 'Prosperous Nepal, Happy Nepal', will be forwarded to the Cabinet for its endorsement after NDC finalises it.
The meeting inaugurated by Prime Minister KP Sharma Oli will also witness deliberations on the draft of the 25-year development concept paper will continue till tomorrow.
Speaking at a programme a member of the NPC Min Bahadur Shahi said that the NDC meeting will also hold discussions on the draft 25-year development concept paper. "The five-year periodic plan has addressed the government’s vision of ‘Prosperous Nepal, Happy Nepali’," he said, adding that the NPC had taken inputs for the draft of the 15th five-year periodic plan from various stakeholders.
Likewise, vice chair of NPC Pushpa Raj Kandel said that the final document will be prepared before April 20 and forward it to the Cabinet for approval.
Though, NPC had set a target to achieve a minimum average economic growth of 9.4 per cent per annum in the next five years, earlier, the draft envisions that the economy can grow up to 10.1 per cent per annum in the next five years based on different scenarios.
The draft of the periodic plan also envisions the country’s agriculture sector to witness average growth of 5.6 per cent per annum in next five years while the industrial sector can witness average growth of 17.1 per cent per annum. Likewise, the services sector is expected to witness 9.9 per cent growth per annum in between fiscal years 2019-20 and 2023-24.
The government had last introduced a five-year periodic plan in 2001, which lasted till 2006. Since then the government had introduced only three-year interim periodic plans on four occasions due to political transition.

Government targeting 6.3 per cent growth for next fiscal year

The government is targeting 6.3 per cent economic growth in the budget for the next fiscal year.
Releasing an approach paper for the 14th three-year plan during a meeting of National Development Council (NDC) today, National Planning Commission (NPC) vice chairperson Dr Yubraj Khatiwada said that the 14th periodic plan has targeted an economic growth of 6.3 per cent for the next fiscal year 2016-17. "The government is preparing budget for the next fiscal year," he said, adding that it will be based on the approach paper of the 14th periodic plan.
He also said that the plan has targeted agriculture sector to grow by 4.5 per cent in the next fiscal year, followed by 7.3 per cent growth of non-agriculture sector. "Likewise, the industry sector is estimated to grow by 8.7 per cent, and service sector is estimated to grow by 6.9 per cent in the next fiscal year," he added.
Khatiwada also said that the 14th periodic plan has targeted average economic growth of 7.1 per cent in the next three fiscal years.
The 14th periodic plan – which starts from the next fiscal year 2016-17 and last till 2018-19 – will be the fourth interim three-year periodic plan instead of the traditional five-year periodic.
The plan has envisaged economic growth of 6.3 per cent for 2016-17, 7.2 per cent for 2017-18 and 7.9 per cent for 2018-19, Khatiwada said, adding that by the end of the 14th periodic plan the country will see an average economic growth of 7.1 per cent.
He also claimed that the country most post economic growth of more than 7 per cent not only to achieve developing country status from current Least Developed Country (LDC) status by 2022 but also to upgrade to the middle income country by 2030 from the current low income country status.
However, country's economy will grow by a mere 0.77 per cent in the current fiscal year, according to the Central Bureau of Statistics (CBS). The government had targeted economy growth of 6 per cent for the current fiscal year.
Country's average annual economic growth remained 2.92 per cent in the 13th periodic plan period which had targeted an average economic growth of 6 per cent in the past three fiscal years, including the current fiscal year which was hit by subpar monsoon, five months of Indian economic blockade since September 20, and the devastating earthquakes of April and May last year.
"This fiscal year we have an excuse because of the earthquakes and supply obstructions due to Tarai-Madhesh unrest," prime minister Khadga Prasad Sharma Oli, who is also the chairperson of NDC. He, however, said that the country has to move forward toward economic prosperity.
The first periodic plan after the promulgation of constitution envisages preparing a base for the welfare state and socialism-oriented economy, though the government has also reiterated to give enough room for the private sector for economic growth. The country needs to invest Rs 2.40 trillion – for next three years – to achieve an average growth of 7.1 per cent. But the eroding government capacity to spend has been a huge challenge lately.
Premier Oli accepted that the government has been unable to spend development budget. "The depleting absorptive capacity of the development budget has to be corrected," he said without elaborating on how his government plans to boost development expenses.