The Ministry of Finance announced an improvement in economic growth and a decrease in inflation.
Inflation is falling between 18.5% and 19.5% this month, although it is expected to fall further to 17.5% in May, according to the monthly economic outlook report. The growth rate was 2.5% and 1% in the first and second quarters, respectively.
The report states that the repayment of external loans and high interest rates constitute a major problem for the financial situation. According to the Ministry of Finance, the budget deficit increased by 34.8% to Rs 3.224 billion in eight months. For sustainable economic development, it is necessary to ensure financial discipline.
According to the ministry, economic growth will be moderate this year and improve next year. The financial and external sectors improved during the first nine months of the fiscal year. In the first half, the agricultural sector improved from 5% to 8.6%.
However, the performance of major industries remained unsatisfactory compared to targets.
According to the report, tax revenues increased by 30% to Rs 6.711 billion in eight months, non-tax revenues doubled to Rs 2.267 billion and exports increased by 9.3% to $23 billion in nine month. Remittances rose 0.9% to $21 billion.
During this period, imports were recorded at $38.8 billion with a decrease of 8%, current account deficit amounted to $500 million with a decrease of 87.5%, investments direct amounts amounted to 1.90 billion dollars with a decrease of 9.7%. Foreign exchange reserves exceeded 8 billion dollars, the exchange rate exceeded 278 rupees.
According to the ministry, there was a reduction in development expenditure, improvement in primary surplus, increase in agricultural credit by 33.6% and its volume was pegged at Rs 1.434 billion, while loans to the sector private sector fell by 54%. since only Rs 88.6 billion was issued, the report said.
The ministry's second economic assessment and approval of the final tranche of $1.1 billion is welcome, and the stock market boom is a sign of restored investor confidence.