KATHMANDU, January 9: Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari has said that achieving the government’s target economic growth rate of 7% for this fiscal year will be a herculean task.
Speaking at a meeting of the House of Commons Public Accounts Committee on Sunday, the governor of the country’s central bank expressed his views on the growth target at a time when the government claims to be meeting the target. Time and time again Finance Minister Janardan Sharma has reiterated to use the capital spending budget by 10% every month to achieve the target.
The coalition government led by Prime Minister Sher Bahadur Deuba, through the replacement budget last September, set an ambitious economic growth target of 7% for the current fiscal year. The growth target is 0.5 points higher than the target announced by the former government led by KP Oli.
However, the NRB Governor said it would be very difficult for the government to meet the target. According to him, it will also be an additional challenge to keep the inflation rate within the target of 6.5% due to the surge in the prices of petroleum products and the increase in interest rates triggered by the continuous shortage of loanable funds.