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After a tumultuous year that gave rise to fears that Nepal is going the 'Sri Lanka way', the good news is the country's external sector has improved noticeably over the last two months. But the bad news is, the government is struggling to meet the revenue collection target along with expediting capital expenditure.  The government has spent only 24.26 percent of the budget in the first five months of the current fiscal year. According to the Financial Comptroller General Office (FCGO), which tracks the budgetary operation, the government’s spending stood at Rs 435.21bn till mid-Dec with capital expenditure totaling just Rs 33.99bn, a meager nine percent of the money allocated in the federal budget, in the review period.  In this context, the most worrying part for the government has been a sharp decline in revenue collection. Such is the slump that current revenue collection is not sufficient even to meet growing recurrent expenditure.  Revenue collection has largely fallen behind the target in the first five months of the current fiscal year as the FCGO data shows the government's revenue collection has a shortfall of Rs 138 billion of the target.  The government had set a target of collecting Rs 464bn in revenue from mid-July to mid-December period, but the collection stood at only Rs 326bn. On the other hand, the overall expenditure stood at Rs 438.79bn. Improving external sector While Nepa’s overall economic prospect is still uncertain as the recession has gripped the economy, the recovery in the country’s external sector has given some breathing space to the government. The latest macroeconomic report of Nepal Rastra Bank (NRB) shows some key indicators of the external sector of the economy including balance of payment (BoP), remittance inflow and forex reserves all have increased.  Nepal’s BOP is at a surplus of Rs 20.03bn in the first four months of FY 2022/23, compared to a deficit of Rs 150.38bn in the same period of FY 2021/22.  Meanwhile, the forex reserve increased by 2.5 percent to Rs Rs 1246.27bn in mid-Nov 2022 from Rs 1215.80bn in mid-July 2022. In US dollar terms, the gross forex reserve increased one percent to 9.63bn in mid-Nov from 9.54bn in mid-July this year.  The current forex reserve, according to the central bank, is sufficient to cover the merchandise imports of 9.7 months, and merchandise and services imports of 8.4 months. Similarly, remittance inflow has increased by 20.4 percent in the first four months against a decline of seven percent in the last fiscal. Nepal has received remittances worth Rs 378.04bn till mid-Nov 2022.  Customs revenue down by 29 percent With a 20.71 percent decrease in the country’s imports decreasing, the customs revenue has also declined in the first five months of the current fiscal year. The new foreign trade statistics released by the Department of Customs (DoC) on Thursday show the customs revenue has shrunk by 29 percent. DoC collected revenue worth Rs 154.13bn in the first five months of the current fiscal year compared to Rs 217.33bn in the corresponding period of the last fiscal year. The customs revenue has been affected due to the import restrictions on four-wheelers and motorcycles above 150 cc and mobile handsets costing over $300, that have higher share in government revenue collection.  Trade deficit decreases by 18 percent The country’s trade deficit has decreased by 18.77 percent in the first five months of the current fiscal year. According to the data released by the Customs Department, the country’s total trade deficit is Rs 597.44bn in the first five months of the current fiscal year compared to Rs 735.48bn during the same period of FY 2021/22. The decline in trade deficit is attributed to the shrunk in the country’s total foreign trade (both exports and imports) which went down by 22.23 percent in the review period.  Top 10 import items With the slowdown in economic activities and the overall market demand as a persistently high inflation rate and a squeeze in liquidity in the financial put a dent in the pockets of consumers, the imports of industrial materials, electronic and electrical equipment, vehicles, cereals, telecom equipment, and pharmaceutical products have declined in this fiscal. Top 10 export items The exports of edible oils, basically refined palm oil and soybean oil, have taken a beating in this fiscal year. The good news is exports of iron and steel have surged by a whopping 494.7 percent. BoP Surplus of Rs 20.03bn The country’s balance of payment (BoP) is at a surplus of Rs 20.03bn in the first four months of the current fiscal year.  Slight improvement in forex reserves Nepal’s forex reserves increased by 2.5 percent in the first four months of the current fiscal year. Remittance inflow surged by 20.4 percent Remittance inflow has increased by 20.4 percent to Rs 378.04 billion in the first four months of the current fiscal year.  Tourism income up by 137 percent With the fast recovery in footfalls of international visitors in the country, earnings from tourism reached Rs 17.95bn in the first four months of FY 2022/23, compared to Rs 7.57bn during the same period of FY 2021/22.  Inflation still at higher side The consumer inflation is at 8.08 percent till mid-Nov. Food and beverage inflation stood at 7.38 percent whereas non-food and service inflation rose to 8.63 percent. Under the food and beverage category, the price of restaurants & hotels has increased by 15.97 percent, tobacco products by 11.81 percent, milk products and eggs by 9.33 percent, cereal grains & their products by 9.19 percent, and alcoholic drinks by 8.84 percent.

The government is going to implement the agreements signed during the Tarai Madhes Movement. Unveiling the Common Minimum Program (CMP) of the government on Monday, Deputy Prime Minister and Finance Minister Bishnu Poudel said that the government will soon implement the agreements signed with the agitating groups. “The cases will be scrapped and arrested leaders and cadres will be released as per the agreements signed between the government and protesters during the Tarai Madhes Movement,” the program said. The CK Raut-led Janamat party and Resham Chaudhary’s Nagarik Unmukti Party had put forward this agenda as a condition to participate in the government. The both parties had also announced that they would not participate in the government until their demands are met. A leader of the ruling coalition said that the process to release the leaders and cadres of Janatmat Party and Nagarik Unmukti Party will be started soon. Earlier on Sunday, Janamat Party and Nagarik Unmukti Party had reached a 12-point agreement for functional unity. The two parties had decided to mount pressure on the government to release Resham Chaudhary among others convicted in the Kailai carnage.

The Nepal Stock Exchange (NEPSE) gained 47. 15 points to close at 2,211. 76 points on Monday. Similarly, the sensitive index surged by 8. 68 point to close at 419. 91 points A total of 14,676,206 unit shares of 257 companies were traded for Rs 5. 31 billion. Meanwhile, Barun Hydropower Co. Ltd, Khanikhola Hydropower Co. Ltd, Chhyangdi Hydropower Ltd, Joshi Hydropower Development Company Ltd and Himalaya Urja Bikas Company Ltd were the top gainers today, with their price surging by 10. 00 percent. Likewise, Swabhimaan Laghubitta Bittiya Sanstha Limited was the top loser as its price fell by 3. 57 percent. At the end of the day, total market capitalization stood at Rs 3. 19 trillion.

CPN (Maoist Center) Bagmati Province Parliamentary Party leader Shalikram Jamarkattel has been appointed as the Chief Minister of the Bagmati Province. He became the Chief Minister with the support of 37 lawmakers of the CPN-UML, 21 of the CPN (Maoist Center), 13 of the Rastriya Prajatantra Party, seven of the CPN (Unified Socialist) and two of the Hamro Party. At least 56 seats are required to form a government in the 110-member Province. Jammarkattel, who had already become ministers of the Province twice, was elected from Dhading 1 (B). He was the Internal Affairs and Law Minister and Economic Affairs and Planning Minister in his previous term.  

The Rastriya Swatantra Party has directed its lawmakers to play an effective role in the meeting of the House of Representatives. During a Parliamentary Party meeting of the party held on Monday, party Chairman Rabi Lamichhane directed the lawmakers to show strong presence in the Parliament and to play an effective role in the Parliament to fulfill the commitment made with the people. The meeting has urged all the parties to give a vote of confidence in favor of Prime Minister Pushpa Kamal Dahal in the Parliament on Tuesday, lawmaker Santosh Pariyar said. Pariyar said that the Rastriya Swatantra Party has just picked the Parliamentary Party leader and whip and chief whip will be nominated later.  

The South Korean smartphone brand Samsung has launched the Samsung Galaxy A04e in Nepal. The A04e is the latest addition to Samsung's lineup of budget smartphones. According to the company, A04e is a 'full-package smartphone' which comes with a dual rear camera setup, fast charging Type-C port, 3 GB RAM and 32 GB internal memory. An additional 1TB of external storage space can be added using a microSD card. Priced at Rs 13,499, Galaxy A04e is powered by MediaTek Helio P35 processor that can clock up to 2.3GHz. Galaxy A04e dual camera setup comprised a 13MP main camera and a 2MP depth snapper. The phone hosts a 5 MP selfie camera. The company said that apart from creating many memorable moments with the combo of these three cameras. The Galaxy A04e comes with Face Recognition which ensures high security and fast device unlock. The 6.5-inch screen of Galaxy A04e comes with a 720 x 1600 pixel resolution. This large screen size allows users to fully engross themselves with the content on their screens. Its in-cell touch LCD PLS display gives the user clarity in images and text and also gives more space for additional features. "The large screen helps tech-savvy Gen-Z users to smoothly glide through their social media feeds. Binge-watchers can enjoy their favorite content on the go without any stutter," reads a statement issued by Samsung Nepal. The phone has a Type-C charging port, which offers a more efficient and faster charging option than other charging cables. With its huge 5,000 mAh battery, users can operate the handset for up to 40 hours. The adaptive power-saving mode adapts to usage and switches to power-saving mode automatically. If the battery is below 50 percent, it puts apps to sleep. The AI Power Management puts apps to sleep if they have not been used for three days and puts them into deep sleep if not used for a month. Galaxy A04e is available in a stylish mix of Black, Copper Light-Blue colors. The phone is available for purchase at Samsung-authorized retail stores across the country.  

The price of gold has increased by Rs 600 per tola in the domestic market on Monday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 103, 900 per tola today. The gold was traded at Rs 103, 300 per tola on Sunday. Meanwhile, tejabi gold is being traded at Rs 103, 400 per tola. Similarly, the price of silver has increased by Rs 10 and is being traded at Rs 1,390 per tola today.

Four persons including three Nepalis died when a bus met with an accident in Lucknow, India. According to an eye witness, three among the deceased have been identified as Chandra Bahadur Saud, Lalit Saud and Nirmala Bohara of Kailali, Nepal. The identity of the bus driver is yet to be established. It has been learnt that 14 persons were injured in the incident. Among them, three are in critical condition. They are undergoing treatment at a local health post. They were returning home from various cities of India. The ill-fated bus was heading towards Tikapur of Kailai from Gujarat of India when the incident occurred.