Remittances up 60pc: NRB

The inflow of the remittance during the first nine months of the current fiscal year increased by 60.2 percent to Rs 150 billion as compared 29.6 percent in the corresponding period last year.

The country had witnessed inflow of remittances to Rs. 142.6 billion during the same period last year.

The recent months' trend of decline in the growth rate of remittances had been a worrying factor for the country. Remittances grew by 58.9 and 58.6 percent during the eighth and seventh months of the current fiscal year and that was attributed to the current global economic recession.

With the rise in remittances, the current account recorded a huge surplus of Rs. 34.6 billion against just Rs. 1.5 billion during the same period last year, according to the latest macro-economic situation released by the Nepal Rastra Bank (NRB).

Exports also saw an increase by 21 percent in the nine months against last year's decline of 3.9 percent. Exports to India rose by 10.6 percent against a decline by 8.3 percent and exports to other countries went up by 42.6 percent against just 6.7 percent last year.

Likewise, total imports also grew by 25.1 percent in the nine months this year against 15.8 percent in the corresponding period last year. Imports from India grew by 12.6 percent and from third countries by a whopping 47.3 percent.

According to NRB data, inflation came down to 11.9 percent in mid-April from 13.1 percent in mid-March. During the mid-term review of the monetary policy, NRB had come to the conclusion that inflation would not come down to a single digit.

Total government expenditure increased by 18.5 percent in the review period against 31.5 percent in the corresponding period last year. Low growth of capital expenditure and principal repayment are responsible for the decreased growth of government expenditure, according to NRB. Capital expenditure declined by 2.5 percent to Rs. 19.2 billion in contrast to an increase of 69 percent in the corresponding period last year.