KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
In the final months of FY 2023/24, the Nepali government allocated approximately Rs 25 billion across development and recurrent expenditures, including notable amounts for capital projects and diplomatic visits.
Concurrently, gold and silver prices rose due to market volatility, while Karnali’s 311 cooperatives reported a substantial Rs 15 billion in capital and ongoing financial activities.
Additionally, the Motihari-Bara-Amlekhgunj Pipeline Project is nearing completion, with 90% of the work done and final tasks expected within two months, supported by investments from both Nepal and India.
Government transfers Rs 25 billion in final two months of FY 2023/24
In the final two months of FY 2023/24, the government transferred approximately Rs 25 billion across various budget headings to address short-term liabilities, with Rs 13.96 billion allocated for development projects and Rs 11.03 billion for recurrent expenditures.
The Ministry of Finance (MoF) reallocated Rs 3.28 billion between mid-May and mid-June, including Rs 2.59 billion for capital expenditure, and made further transfers totaling Rs 7.75 billion across 114 headings in the last month, with Rs 11.37 billion for capital projects, notably benefiting the Ministry of Physical Infrastructure and Transport.
Additional allocations included Rs 24.3 million for President Ram Chandra Paudel’s Europe visit, Rs 2 million for a Nepali delegation to India, Rs 219.6 million for new court vehicles, and Rs 24.6 million for the Emir of Qatar’s state visit.
The Office of the Auditor General pointed out that such budget transfers could contribute to bureaucratic irregularities.
Gold prices surge
Gold prices in the domestic market rose by Rs 500 per tola. Fine gold was priced at Rs 149,900 per tola, up from Rs 149,400 the previous day, while standard gold increased to Rs 148,200 per tola from Rs 148,700.
Silver also experienced a price adjustment, standing at Rs 1,875 per tola. This price fluctuation reflected ongoing volatility in precious metal markets, influenced by global economic factors or local market conditions.
Karnali’s 311 cooperatives hold Rs 15 billion in capital
In Karnali province, 311 cooperatives are registered with the Land Management and Cooperative Registrar’s Office in Surkhet.
Their total capital stands at Rs 15 billion, with Rs 1.75 billion in share capital and Rs 8.2 billion in savings. They have issued Rs 11.5 billion in loans and hold Rs 714 million in reserve.
These cooperatives, employing 1,500 people, span various sectors including agriculture, finance, and social enterprises. They are distributed across 10 districts, with Surkhet hosting the most at 102 cooperatives.
Motihari-Bara-Amlekhgunj Pipeline Project nears completion
The second phase of the Motihari-Bara-Amlekhgunj Petroleum Pipeline Project is nearly complete, with 90% of the work finished.
According to Binitmani Upadhyay of the NOC’s Madhesh Province Office, the remaining tasks, including two 4,001-kiloliter tanks and final pipeline installation, will be done within two months.
The project, a Nepal-India collaboration, has seen investments of Rs 1.54 billion from Nepal and Rs 600 million from India.
(Compiled and prepared by Srija Khanal)
Economic Digest is a daily morning economic digest, basically relatable summations of the most important business news, and happenings from Nepal into easy-to-understand summaries.
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