KATHMANDU: The government has estimated nation's economy to expand by 3.9 per cent in the current fiscal year owing to the growth in the agriculture and service sectors despite the contraction in the productive sector including the industries and construction sectors.

Finance Minister made such a projection while tabling the Economic Survey of Fiscal Year 2023/24 in a meeting of the House of Representatives (HoR) on Sunday. He presented the Economic Survey after Speaker Devraj Ghimire granted him permission amidst the protest and sloganeering by the main opposition party, the Nepali Congress.    

"The overall economic, social, sector-wise development and good governance of the federal, provincial and local levels during the entire period of the last fiscal year and up to eight months of the current FY has been reflected and analyzed," he said.    

Noting that the country's economic and social indicators have gradually improved, Finance Minister Pun said the economic growth rate of Gandaki, Bagmati and Lumbini is estimated to remain above the national average and the total investment is likely to increase by 2.8 per cent and reach Rs 1741.48 billion in the current fiscal year.    

"It is estimated that the per capita income will reach USD 1,456 US. The average consumer price inflation is 6.08 per cent as of March 13 of the current fiscal year. There is gradual improvement in the revenue mobilization," he added.    

Informing the House that the revenue collection of the federal government by mid-March of the current FY has increased by 9.7 per cent and reached Rs 639.5 billion, Finance Minister Pun said the federal expenditure increased by 2.9 per cent to reach Rs 801.58 billion during this period.    

"The total public debt has reached Rs 2388. 26 billion as of mid-March. Of the total debt, domestic debt is 49.6 per cent and external debt 50.4 per cent. In the FY 2079/80 BS (2022/23), the provincial and local levels received Rs 517. 62 billion, including Rs 397.62 billion through the fiscal transfer from the federal level and Rs 120. 62 billion through revenue allocation," Minister Pun further added.    

Reiterating that the fiscal sector is gradually improving, he said there is adequate liquidity in the banking system and the interest rate of loans and deposits is decreasing. He informed the parliament that the loan disbursement towards the private sector as of mid-March of the current FY has increased by 5.6 per cent.    

The finance minister said the per bank branch population has reached 2,515 with the expansion of the network of banks and financial institutions as well as the transactions carried out through electronic means and the promotion of financial literacy.