Interim plan aims to achieve 5.50 % economic growth rate, reduce poverty

Interim plan aims to achieve 5.50 % economic growth rate, reduce poverty
Nepanews.com, 24-Jun-07

The three-year interim plan prepared to address the transitional period after the conflict has laid priority on communications, transport, reconstruction and rehabilitation works, among others, the Kantipur daily reports.

According to the report, in the draft of Adharpatra prepared by National Planning Commission (NPC) in which there is representation of eight parties clearly aims to spend Rs 587, 770,000,000 (US$9 billion) in development activities in the next three years period.

The news report further says that the aim of achieving the kind of economic growth rate and coming up with development expenditure and foreign assistance is very ambitious and that some of the programmes that features in the 10th 5 year plan has been given continuity in it also.

The interim plan has ambitious aims to achieve 5.50 % growth rate and bring down the percentage of people living below the poverty line to 24 percent during its three year period. Similarly, the growth rate envisaged for agriculture and non-agriculture sector is also very high.

The interim plan also chiefly aims to reconstruct and restore the physical, economic and social infrastructure that have been destroyed and left crumbling and in disrepair. It also aims to generate more employment, promote peace and good governance, invest in development of physical infrastructures and run development programmes in Karnali including other backward areas.

Interim Plan to invest Rs 587 billion

Interim Plan to invest Rs 587 billion
eKantipur.com, 22-Jun-2007
BY PREM KHANAL

The three-year Interim Plan that will be implemented from the coming fiscal year aims to spend Rs 587.7 billion on development activities to achieve an average 5.5 percent economic growth and lower incidence of poverty by seven percentage points to 24 percent.

Likewise, the plan also aims to increase per capita income by 3.3 percent on annual average and set a target of limiting inflation to 5.6 percent during the plan period.

According to a copy of draft concept paper of the plan obtained by the Post, the plan also targets to achieve average annual growth of 3.6 percent for the agriculture sector and 6.5 percent for non-agriculture sector.

To achieve the targets, the government is planning to invest 28.84 percent (Rs 169.49 billion) of the total planned expenditure while the remaining amount is expected to come from the private sector. The private sector is estimated to invest Rs 418.19 billion during the three-year period that will end in the fiscal year.

Of the total government's development expenditure, 87.68 percent will be spent on non-agriculture sector. With an estimated expenditure of 26.07 percent of the total, transportation and communication sector is expected to be the largest absorber of government investment.

Similarly, community sector will get 20.38 percent while electricity, gas and water sector is expected to attract 18.97 percent. Education sector will receive 18.25 percent while health is allotted 7.32 percent.

However, the government's total expenditure, including recurrent expenditure, is estimated to remain Rs 493.38 billion during the plan period. The recurrent expenditure, which mainly finances salaries of government employees, security expenditure and interest of loans, among others, is expected to absorb 55.28 percent (Rs 272.72 billion) of the total expenditure.

Likewise, capital expenditure that mainly deals with the expenditure related to development activities is likely to be second largest absorber (Rs 175.28 billion or 35.53 percent of the total) followed by the principal repayment of loans (9.20 percent).

Of the expected sources of financing, revenue will be financing Rs 312.53 billion (63.35 percent) while foreign assistance Rs 133.54 billion (27.07 percent) and internal loan Rs 47.3 billion (9.59 percent).

The plan, which is being implemented with the main purpose of providing the feeling of change to common people by lowering existing level of unemployment and poverty, has focused its main emphasis in restoration of peace, reconstruction and rehabilitation.

Likewise, preparation of economic basis based on inclusive employment opportunities, promotion of peace and good governance, increment of investments in infrastructure development, acceleration of development activities with policy of social inclusion and targeted programs are major strategies of the plan.