NRB Guv criticises govt for lack of development activities

Governor of Nepal Rastra Bank (NRB) Deependra Bahadur Chhetri has criticised the government for its failure to spend the budget earmarked for development works.

"The prolonged freeze of amount meant to kick start development activities across the country does not bode well to the nation," he cautiously warned.

Speaking at a function held in the capital Sunday, he also expressed grave concern over the widening trade deficit of the country.

Higher growth in imports compared to exports caused the trade deficit to soar by 28 percent and cross over Rs 115 billion during the first seven months of the current fiscal year.

Total imports rose 25.5 percent and touched Rs 155.77 billion over the first seven months of the fiscal year. While imports from India increased by 12.5 percent, imports from other countries surged by 47.9 percent compared to the same period last year.

Governor Chhetri also opined that without effectively revamping the export sector, the country would continue to reel under the yoke of trade deficit.

Speaking during the same occasion, Finance Minister Dr Baburam Bhattarai said that the government was serious towards mitigating the menace of trade deficit.

"It would be foolhardy to think that impressive revenue collections alone will suffice to start drastic development. So, the government will take every possible measure to bolster the export sector of the country," he said. nepalnewes.com nd Apr 13 09