Evaluation of immediate past plan of Nepal (14th periodic plan of Nepal)
The Fourteenth Plan was formulated as the first plan from the historic Constituent Assembly after the promulgation of the constitution. The plan was to create an independent, prosperous and socialist-oriented national economy by making it self-reliant in the field of agricultural produce, medicine, and application. The scheme aimed to reach a middle-income country through a public welfare state with social justice. In addition, this plan was the first to attempt to radicalize and internalize sustainable development goals.
During the formulation, a devastating earthquake cost the economy around Rs. seven trillion damage. The prolonged blockade at the southern border was causing further damage to the economy. Due to this the investment environment was also hostile. The plan was designed to accelerate reconstruction in the aftermath of the earthquake by a significant increase in public investment, federal implementation, and management, as well as addressing the damage to the economy through trade barriers along the southern border.
According to the development agenda set by the constitution, the Fourteenth Plan was oriented towards implementing the idea of making the national economy socialist-oriented, self-reliant, independent and progressive. In addition, the purpose of conducting the constitution as a preliminary task was to hold elections at the federal, state and local levels, to create the necessary laws and structures for the implementation and management of federalism.
There are three levels of government functioning at the union, state and local level elections. This has led to the end of the long political transition and has maintained political stability. The use of the list of powers of the three tiers of government in the federal structure and the construction of similar methods and structures have been intensified. The first two years of the Fourteenth Plan were important years for ensuring economic equality, good governance, development, prosperity, and social justice sought by the country.
Moreover, after the formation of a stable government with a referendum for political stability, the investment environment has been favorable and the implementation of fiscal federalism has also begun. The scheme has succeeded in maintaining macroeconomic stability by removing catastrophic earthquakes and obstruction of the southern border through financial policies and incentives. The medium-term expenditure structure was created on the basis of this plan, to enhance the interrelationships between the scheme and the budget system and to make the finance system sound and efficient.
The Fourteenth Plan aimed to accelerate economic transformation through poverty reduction through high economic growth with productive employment-oriented and equitable distribution. In line with this, the target is to reduce the average annual growth rate of GDP by 5.5 percent. On an area-wise basis, the average value of the agricultural sector during this period is 8.2 percent of the annual average and 5 percent of the non-agricultural sector. After the Eighth Plan, the economic growth rate of the review period (8.5 percent) is closest to the target set by other plans.
Investment friendly economic policies, continuous improvement in the power supply system, improvement in labor relations and political stability due to the favorable environment in the investment environment have had a positive impact on the economy during the Plan period. The economy of the country is positive due to the entry of 1 lakh 8 thousand tourists in the country.
Also, positives including demographic dividend, investment-friendly environment, developed socio-economic infrastructure, rapid reconstruction of earthquake and increase in debt production.
In addition, the positive scenario, including demographic dividend, investment-friendly environment, developed socio-economic infrastructure, rapid reconstruction of earthquake and increase in debt production, have laid the basis for departure point of development and prosperity of the country.
The ratio of gross domestic product (to producer value) comes to be 1 and 2 percent, respectively. Inflation is slowing down in the last decade due to the implementation of efficient monetary policy, despite the rapid expansion of the past and the implementation of the expansionary fiscal policy.
The Human Development Index is expected to return to 0.57 and the expected life expectancy to an average of 72 years, respectively. Although there have been significant advances in achieving the accessibility goals of social indicators, there is a need for improvement on the qualitative side.
The major economic, social and physical goals of the Fourteenth Plan and the progress of two years are shown in the following table. Statistics relating to GDP are mentioned throughout the Plan period.
Table: Economic, Social, and Physical achievements of 14th Periodic Plan of Nepal:
|1||Economic growth rate||7.2%||6.9%|
|2||Agricultural Growth Rate||4.7%||4.2%|
|3||Non Agricultural growth rate||8.4%||8.0%|
|5||GDP Per Capita||116.5 US$||117.5US$|
|6||Population below the poverty line||17%||18.7%|
|8||Life expectancy at birth||72 Years||69.7 Years|
|9||Population with access to drinking water||90%||88%|
|10||Enrollment rate at the secondary level||45%||43.9%|
|11||Electricity Generation||2301 MW||1020 MW|
|12||Family with access to electricity||87%||90.7%|
|13||Irrigation (In 1 lakh hectares)||15.2||14.7|
|14||Population with access to internet service||65%||55.4%|
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