NPC forecasts 7pc economic growth, sets revenue growth rates for FY 2024-27

KATHMANDU: The National Planning Commission (NPC) has revealed projections for budget expenditure and resources for the upcoming three fiscal years – 2024/25, 2025/26, and 2026/27.

The National Resource Estimates Committee, chaired by Dr. Min Bahadur Shrestha, Vice-Chairman of NPC, formulated a medium-term expenditure structure and budget framework for constitutional bodies, sectoral ministries, provincial governments, local levels, and federal reserve funds.

Preliminary estimates by the NPC indicate that the government’s total resources for the fiscal year 2024/25 will amount to Rs. 1,800 billion. For the subsequent fiscal years, the total outlays are projected to be Rs. 2,100 billion (2025/26) and Rs. 2,455 billion (2026/27).

The NPC outlined that the budget for the upcoming fiscal year (2024/25) will be prepared within the limits of Rs. 1,800 billion. Sources for this budget include an estimated Rs. 1,245 billion from the government’s revenue, Rs. 50 billion from foreign grants, Rs. 210 billion from foreign loans, and Rs. 295 billion from domestic borrowing.

The NPC forecasts a revenue growth rate of 16.4%, 16.8%, and 17.3% for the fiscal years 2024/25, 2025/26, and 2026/27, respectively. The Commission set a target of achieving a 7% economic growth rate within the next three fiscal years.

Economic growth rates are estimated at 6% for 2024/25, 6.5% for 2025/26, and 7% for 2026/27. Inflation is projected to remain within the desired limit of 5.5% over the next three years.

The domestic debt limit is estimated to be 4.5% of the gross domestic product (GDP). The NPC emphasized that the expenditure and resource allocations for the next three fiscal years prioritize projects and programs aimed at increasing production, productivity, and job creation.