GDP growth target evokes suspicion amongst stakeholders
The government's target of achieving economic growth has evoked suspicion
amongst the participants in the stakeholders' consultation meeting of Nepal
Development Forum (NDF).
In its draft for the Three-Year Interim Plan (TYIP) to be presented at the
Nepal Development Forum (NDF) meeting to be held from May 12 to 14, the
Ministry of Finance has set an overall gross domestic product growth of 8.5
percent.
"The industrial sector is going downhill due to insecurity and paralyzing
power cuts. In this light, it is illogical to be confident about the set
target," said Dr Migendra Rijal, former member of the National Planning
Commission (NPC).
World Bank representative Susan Goldmark also said that the GDP target is
too big to realise in the light of the global meltdown and industrial woes
in the country.
The UNDP also urged the government to be realistic and prudent in terms of
achieving the growth.
Presenting the draft paper, Prof Gun Nidhi Sharma, member, NPC, however,
claimed that the government will modernise and commercialise the agriculture
sector and enhance investment in industries to achieve the set growth.
He added that Nepal was planning to purchase 500 MW electricity from India
within one-and-a-half years to reinvigorate the industrial sector. Notably,
most of the participants praised the participatory method of development
presented in the draft.
They also suggested the government to adopt a realistic approach in terms of
desired paradigm shift as well as to create employment opportunities.
The draft aims to post an overall GDP growth of 8.5 percent, with 5.6
percent GDP growth in the agriculture sector and 9.8 percent in
non-agriculture sector through the mobilisation of Rs 559.5 billion. Of the
total of Rs 559.5 billion, the government will arrange Rs 299.8 billion
whereas the remaining budget is proposed to be adjusted through external
loans/donations as well as international borrowings. nepalnews.com Apr 16 09
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