The government has revised the economic growth target for the ongoing fiscal by 1.49 percentage points to 7.01 percent.
Though the government had anticipated economic growth of 8.5 percent in fiscal 2019-20, the Ministry of Finance has lowered the economic growth projection based on the budget implementation trend of the first three months of the fiscal.
MoF officials said the revised economic growth projection, which was made public today, was primarily backed by anticipation of low agricultural growth in 2019-20 and government expenditure failing to gather pace.
Following the projected fall in production of paddy this year due to faulty Garima seeds, the government expects a drop in overall agricultural output in this fiscal as paddy has a major stake in total agricultural production. The drop in agriculture output is also expected to hit the entire...