Govt targets to invest Rs 805b in next three years

KATHMANDU, March 8: The government is planning to invest Rs 805.6 billion in the next three years to achieve 5-6 percent growth rate, lower absolute poverty to less than 21 percent and generate additional 6,000,000 jobs.



According to the preliminary concept paper of the new three-year plan (2010/11 - 2012/13) floated recently by National Planning Commission for intellectual discussions, the total size of economy is expected to reach Rs 1381.6 billion at producers´ price by the end of fiscal year 2012/13. The government is planning to implement the new three-year plan from the next fiscal year. [break]



Of the total investment requirement needed for the plan period, private sector is expected to invest Rs 554.6 billion (almost 69 percent) while the government is expected to inject remaining Rs 251 billion.



Service sector that contributes almost half of the Gross Domestic Product (GDP) is expected to attract the biggest investment worth Rs 607 billion, while agriculture has been proposed to get Rs 89.05 billion followed by industrial sector, which is likely to attract Rs 109.6 billion during the plan period.



Among the sub-sectors falling under service sector, biggest share has been proposed for transport, storage and communications sector, which contributed almost 10 percent to the GDP.




According to the preliminary budget allocations, the sector has been proposed budget worth Rs 223 billion, of which private sector is expected to invest almost 70 percent.



Similarly, wholesale and retail trade sub-sector that commands second biggest weight after agriculture sector in Nepal´s GDP has been proposed to get an investment worth almost Rs 83 billion. Likewise, the government is planning to invest Rs 52 billion in the electricity, gas and water sector.



Of the allocated amount, the government is to make 65 percent of the proposed investment while remaining is expected to come from the private sector.



On income front, the government is planning to finance Rs 691 billion from internal revenue mobilization and GDP/revenue ratio is expected to reach 17.55 percent by the end of the plan period. During the period, the government aims to mobilize Rs 138 billion as foreign grant.



Though the three-year plan, the government has proposed to put extra efforts in employment generation, along with achieving broad-based economic growth. It has set a target of generating 200,000 jobs each year by identifying potential areas of employment and bringing timely change in education and training methodologies, stated the concept paper.

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