In the first month of the fiscal year 2024/25, Nepal's government reported a significant increase in revenue, totaling Rs 96.95 billion, which is double the expenditure of Rs 40.20 billion. This expenditure only accounted for 2.16% of the annual target, while revenue reached 6.59% of its goal [36d0480a]. This positive trend in government finances comes alongside a rise in gold prices, which increased by Rs 800 per tola to Rs 150,800, attributed to improvements in the US economy [36d0480a].
The Nepal Stock Exchange (NEPSE) also saw a substantial gain of 760.4 points, driven by recent government and banking policy changes that have positively influenced investor sentiment [36d0480a]. In the agricultural sector, 98% of paddy transplanting has been completed, up from 90% last year, indicating a strong performance in this critical area of the economy [36d0480a].
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) welcomed the establishment of an Economic Reform Commission, which is expected to drive further improvements in the business environment [36d0480a]. Additionally, foreign currency exchange rates remained steady, contributing to a stable economic outlook for the country [36d0480a].
In the broader context of Nepal's economy, remittance inflow has increased by 20%, reaching Rs 1,198.6 billion in 2023/24, while spending by Nepali students on education abroad surged to over Rs 104 billion. Despite a decrease in Nepali workers going abroad, positive indicators such as a current account surplus, increased foreign direct investment (FDI), and growth in foreign exchange reserves reflect the resilience of the Nepali economy [9c51d5db].
Overall, the combination of rising government revenue, stable foreign exchange rates, and positive developments in the stock market and agricultural sector paints a promising picture for Nepal's economic future [36d0480a] [9c51d5db].
