KATHMANDU: Economic Digest, a daily morning email digest, is basically a relatable summation of important business news from Nepal into easy-to-understand summaries.
Province 5 unveils Rs 36.35 billion budget
Province 5 has unveiled a budget of Rs 36.35 billion on Monday for the fiscal year 2020/21. Out of the total allocated budget, Rs 12.59 billion (34.64 percent) has been allocated for current expenditure, Rs. 18.61 billion (51.22 percent) for capital expenditure and Rs. 5.145 billion for financial management.
The budget was presented by the Chief Minister and Minister for Economic Affairs and Planning Shankar Pokharel at the province assembly meeting held at 3 pm on Monday.
The budget aims to collect Rs 2.37 billion from internal revenue, Rs 11.34 billion from revenue sharing, Rs 88.56 million from royalty allocation, Rs 17.63 billion from financial equalization, Rs 5.88 billion from conditional grant and Rs 483.33 million from the supplementary grant.
SC quashes review petition on stay order on tax collection
The Supreme Court has rejected the government’s demand to quash the order issued to stop the tax collection process.
The apex court on Monday maintained that its earlier stay order on tax collection will continue. A joint bench of Chief Justice Cholendra Shumsher JBR and Justice Prakash Kumar Dhungana rejected the government’s demand for revocation of the order and continued the old order.
With the new order, the government will not be able to immediately proceed with the process of tax collection.
The apex court had on Wednesday ordered that the taxes should not be collected while the lockdown has been enforced and if it is to be collected, a 30-days deadline after the lockdown is lifted should be provided.
FMTCL to expand online service in Kathmandu Valley
The Food Management and Trading Company Limited (FMTCL) is all set to expand its online service to other areas of the Kathmandu Valley.
It has been supplying goods and essentials like rice, pulse, bean to the residents of the Valley without delivery charge amid lockdown.
The FMTCL has partnered with private company, Sastodeal, to make the supply, said the FMTCL executive officer Netra Prasad Subedi.
“In the first phase, the delivery has been made within Chakrapath (Ring Road). Plans are afoot to expand its service to other areas after completing all internal procedures,” he said.
The delivery service within five kilometres from Chakrapath would start in a day or two, he said. Sanitizers would be put for sale online in cooperation with Herbs Production and Processing Co. Ltd., he said.
In the first phase under the delivery service, the FMTCL has been providing its service online amid lockdown since April 8.
Domestic, foreign investment commitment decreases during lockdown
Both domestic and foreign investment has shrunk due to the coronavirus pandemic and lockdown in Nepal.
The Department of Industry said the Nepal government has received an investment commitment of Rs 1,045,000,000 since March 24.
Tourism has received the highest investment commitment made during the last three months. According to the Department, the tourism sector has received an investment commitment of Rs 450 million between February 13 to March 17, 2020.
Finance Minister Dr Yuba Raj Khatiwada in the fiscal budget of 2020/21, has said the Investment Board Nepal has made an investment commitment of Rs 1.435 trillion.
Meanwhile, a foreign investment commitment of Rs 1.55 trillion has been approved, according to Minister Khatiwada.
In the economic survey report on the fiscal budget of 2019/20, Finance Minister Khatiwada had said the foreign investment commitment increased by Rs165 percent to reach 29.67 billion.
An investment commitment of Rs 1 billion has come for 15 different projects since Nepal went into the lockdown.
Nepal Rastra Bank collects Rs 175 billion internal loan
The Nepal Rastra Bank (NRB) has collected a total of Rs 175 billion rupees from the internal loan to be collected in FY 2019/20 till date.
According to NRB spokesperson Dr. Gunakar Bhatta, the bank collected the loan through the Treasury Bill and development loans.
“A total of Rs 75 billion has been collected through the issuance of Treasury bills whereas the development debenture has contributed 100 billion in the internal loans,” Dr Bhatta said.
The government has earlier stated that it would arrange Rs 195 billion from internal loan, which later was brought down to Rs 193 billion.
NRB has made a schedule to collect the internal loan and so far has been able to meet its target.
(Compiled and prepared by Swastik Aryal and Nitish Lal Shrestha)
Nepal Economic Digest is a daily morning email digest, basically relatable summations of the most important business news, happenings from Nepal into easy-to-understand summaries.
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