Inflations stands at 12 pc, revenue and foreign grants increase

The inflation as measured by the consumer price index remained at 12.6 percent in the first six months of the current fiscal year compared to 13.2 percent same period last year, Nepal Rastra Bank said on Friday.

The price index of Terai rose by 12.5 percent and followed by 11.8 percent in Hills and 10.6 percent in Kathmandu Valley in the review period.

According to the macroeconomic analysis report public by the bank, the price index of food and beverages group increased by 18.1 percent whereas the index of non-food and services group rose only by 4.5 percent, the highest being in sugar and sugar related products.

Similarly, the price indices of pulses, spices, vegetables and fruits as well as meat, fish and eggs sub-groups increased in the review period by 36.7 percent, 34.8 percent, 29.2 and 22.8 percent respectively. Similarly, within the group of non-food and services, the index of tobacco and related products has the highest increased rate of 11.6 percent. The price index of transport and communication decreased by 7.5 percent.

The monetary market regulator said, in the first six months of 2009/10, net domestic assets expanded by 14.7 percent. Domestic credit increased at a higher rate on account of a significant increase in the claims of private sector while claims on government declined by 12.4 percent.

Similarly, during the review period, the deposits mobilisation of commercial banks increased by Rs. 25.9 billion (4.7 percent) amounting to Rs. 575.8 billion. The loan and advances of commercial banks grew by 16.6 percent.

However, liquid assets of the commercial banks declined substantially in the review period, down by 12.3 percent.

In the review period, balance held abroad by commercial banks declined by Rs. 5.1 billion to Rs.48.3 billion, and the balances with NRB declined by Rs. 11.6 billion. In the review period, the investments on government securities declined by 11.0 percent

The year on year (y-o-y) NEPSE index declined by 19.5 percent and its sensitive index (based on July 2006) stood at 129.60 point in mid January 2010 as against 173.11 in mid January 2009.

The y-o-y market capitalisation increased by 12.7 percent and the ratio of market capitalisation to GDP stood at 37.6 percent in the review period. Of the total market capitalisation, bank and financial institutions accounted for 73.8 percent followed by manufacturing and processing companies (1.9 percent), hotels (1.2 percent), business
entities (0.4 percent), hydropower (4.4 percent) and other economic sectors (18.4 percent).

In the first six months of 2009/10, government budget surplus stood at Rs.10.16 billion compared to a surplus of Rs7.42 billion in the corresponding period of the previous year. A high growth of resource mobilization relative to total government expenditure accounted for such a budget surplus during the review period.

Total government spending increased by 31.8 percent during this period with recurrent expenditure increased by 40.2 percent and capital expenditure by 33.9 percent.

Similarly, the revenue mobilisation of the government grew by 34.0 percent compared to an increase of 25.5 percent in the corresponding period of the previous year.

Custom revenue rose by 45.1 percent and excise revenue by 67.6 percent. Income tax revenue increased by 32.0 percent while non-tax revenue decreased by 11.0 percent.

The foreign grants and aids have also increased to 13.06 billion compared to 10.96 billion same period last year. nepalnews.com