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Government Unveils 14th Three Yearly Development Plan

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Government Unveils 14th Three Yearly Development Plan
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January 13: The government has announced a 14th three yearly development plan with a target of spending Rs 3200 billion. As per the National Planning Commission, the government need to spend the aforementioned amount in order to achieve the targeted economical growth rate based on incremental capital output ratio (ICOR). The plan that starts in the current FY will end in 2074/76 under which the government has targeted of achieving average 7.2 per cent economic growth annually.

In order to manage the predicted expenditure, the government has prepared a detail charter aiming to mobilise Rs 1763 billion revenue during the planning period. The expected mobilisation of the revenue during the period totals 24 per cent of total gross domestic product (GDP). The charter prepared by planning commission is approved by NPC's Chairman Prime Minister Pushpa Kamal Dahal on Sunday, January 8.

The NPC has predicted a total of Rs 2400 billion capital investment during the planning period. Among them, the government will invest Rs 9500 billion or 39.4 per cent while the commission predicts that the remaining amount will be invested by private or co-operative sector. Private sector is expected invest the highest amount of Rs 1327 billion or 54.7 per cent capital investment.  The charter expects of capital investment of Rs 143 billion or nearly 6 per cent capital investment from co-operative sector. "Given that, the co-operatives have been considered a pillar of the economy in the constitution itself, they are given priority in the planning," said a member of NPC.

The predicted capital investment proposed by the government for the planning period is 13.6 per cent of the GDP of that period.  However, economists said that the capital investment to be carried out by the government is inadequate for achieving the targeted economic growth rate.

They argue that the private investment are influenced by various economic and non-economic factors, thus a definite figure is not possibly predicted. "Increase in capital expenditure by the government is the only option to achieve high economic growth rate," said an economist.

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