May 27, 2016: In the current FY 2072/73, per capital income of a Nepali has risen by 4.6 percent in the market price to Rs 80,921. In the previous year, it was Rs 77,790.Although income of a normal person has decreased in margin rate, per capital income of an individual in market price has increased by Rs 3842 than previous year due to the high inflation rate.
However, in US dollar term, per capita income has decreased by USD 9 to USD 766. It was USD 775 in the previous FY. Due to undervaluation of Nepali currency in compare to USD, per capital income has decreased in USD term. Before five years, per capita income of a Nepali was USD 708.
The financial survey of 2072/73 presented by Finance Minister Bishnu Poudel in the Parliament on Thursday shows 0.53 percent decrease of Gross National Product (GNP) in the base price of 2057/58. The GNP in the current FY is Rs 28,110, which was Rs 28,261 previous year. The economic survey shows contribution of 34 percent from agricultural sector while industrial sector has contribution of 14 percent in the economy which is in decreasing trend since some years. The remaining part of economy has been contributed by service sector as per the economic survey.
The survey predicts of 6.3 percent decrease in industrial sector and 2.7 percent decrease in service sector in the current FY in the non-agricultural sectors. However, it predicts increase of 1.1 percent in the agricultural sector. In the last FY, the growth rate of industrial and service sector was 1.5 and 3.6 percent respectively.
The survey has also shown Gross Domestic Product (GNP) of 0.77 percent, which is the minimum growth rate in last 14 years, due to the contraction in development conductor sectors of the economy such as agricultural, tourism, hydro and infrastructure. During the year 2058/59, when the country was reeling under internal war with rebel group, the economic growth was 0.16 percent.
Similarly, the inflation rate of the country has reached 9.7 percent in the current FY due to shortage of supply in compare to demand because of contraction in economic activities.
Although the economic growth of the country rested in minimal than the government’s prediction of 6 percent, inflation rate however is at targeted level of 9.5 percent. “Due to the devastating earthquake of last year followed by economic blockade, all economic activities and industrial sector were negatively affected causing contraction in the economy,” says Krishna Prasad Devkota, Joint Secretary of Economic Policy Analysis Division of Finance Ministry. The size of economy has increased to Rs 2249 billion in the current FY from Rs 2120 billion of previous FY.