KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
In the first month of fiscal year 2024/25, the government’s revenue collection of Rs 96.95 billion was twice its expenditure of Rs 40.20 billion, marking a significant fiscal surplus.
The expenditure constituted a mere 2.16% of the annual target, while revenue reached 6.59% of its goal.
In other economic updates, gold prices surged by Rs 800 per tola to a record high of Rs 150,800, driven by US economic improvements, while silver prices also increased.
The Nepal Stock Exchange (NEPSE) experienced a robust gain of 760.4 points, reflecting a rebound in the market due to government and banking policy changes.
Additionally, nearly 98% of paddy transplanting has been completed this year, showing an improvement over last year due to favorable rainfall.
Govt revenue of Rs 96.95 billion Twice the spending in first month of current FY
In the first month of the current fiscal year 2024/25, the government’s revenue collection was double its expenditure.
According to records from the Financial Comptroller General Office (FCGO), the government collected Rs 96.95 billion in revenue between mid-July and mid-August this year, while total expenditure for the same period was Rs 40.20 billion.
The expenditure represented just 2.16 percent of the annual target, whereas the revenue collection reached 6.59 percent of its annual goal.
Of the total expenditures, Rs 12.38 billion (1.09 percent) was for recurrent costs, Rs 8.55 billion (2.43 percent) for capital expenses, and Rs 19.27 billion for debt servicing.
For the fiscal year, the government has allocated Rs 1.140 trillion for recurrent expenditure, Rs 352.35 billion for capital expenditure, and Rs 367.28 billion for financial management.
Gold price up by Rs 800 per tola last week
Last week, the price of gold rose by Rs 800 per tola (11.6638 grams), reaching a record high of Rs 150,800 per tola in the Nepali market.
According to data from the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold started at Rs 148,800 per tola at the beginning of the week, surged to Rs 150,800 by Tuesday, and then fell by Rs 1,200 to Rs 149,600 per tola by Friday.
FENEGOSIDA attributed the significant increase in gold prices to improvements in the US economy and its stock market over the past week.
In addition, silver prices also rose by Rs 40 per tola, climbing from Rs 1,720 to Rs 1,760 per tola during the same period.
NEPSE rises by 760 Points in mid-July to mid-August
The month of mid-July to mid-August has been a vibrant month for Nepal’s stock market, with the Nepal Stock Exchange (NEPSE) climbing by 760.4 points over the course of the month.
This significant increase is attributed to the recent change in government and the Nepal Rastra Bank’s relaxed policies towards the stock market.
The daily average of NEPSE rose by 34.563 points as the market experienced a notable rebound.
This surge led to new milestones in share trading, with five new records being set within the month. Total transactions for July amounted to Rs 4 trillion 13 billion.
98 percent of paddy transplanting completed
Nearly 98 percent of paddy transplanting has been completed nationwide this year.
According to the Ministry of Agriculture and Livestock Development, approximately 1.4 million hectares of land is suitable for paddy cultivation, with paddy being transplanted on about 1.372 million hectares of that area.
Compared to the last fiscal year (FY 2023/24), when only around 90 percent of arable land had paddy transplanted by July, this year’s figure has risen by eight percent by July of the current FY 2024/2025.
The favorable rainfall has contributed to improved paddy transplanting this year.
FNCCI hails Ministry’s step to form Economic Reform Commission
The Federation of Nepalese Chambers of Commerce and Industries (FNCCI) welcomed the Ministry of Finance’s decision to establish a high-level Economic Reform Commission.
In a press statement issued today, Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industries (FNCCI), expressed positive sentiments about the move.
“The FNCCI had been advocating for a high-level commission to oversee and coordinate economic reforms. I extend my gratitude to the government for prioritizing our proposal,” said President Dhakal.
Foreign currency exchange rates steady
Nepal Rastra Bank (NRB) has announced that the foreign currency exchange rates for today remain unchanged from yesterday.
The buying rate for the US dollar is 134.01 rupees, and the selling rate is 134.61 rupees. The Euro’s buying rate is 147.28 rupees, and the selling rate is 147.94 rupees.
The British pound is priced at 172.92 rupees for buying and 173.69 rupees for selling. The Australian dollar has a buying rate of 88.84 rupees and a selling rate of 89.24 rupees.
The Kuwaiti dinar is set at 438.14 rupees for buying and 440.10 rupees for selling, while the Bahraini dinar is priced at 355.53 rupees for buying and 357.13 rupees for selling.
(Prepared by Srija Khanal)
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