Editorial

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July 9, 2012, 5:45 p.m.

Not just the political process, Nepal’s economy is also passing through difficulties. High inflation, declining development expenditure, growing public expenditure, declining export and growing import are some of the problems faced by Nepal’s economy at present. As the global economy continues to be shaking due to recession in Europe and the sluggish growth of even the Chinese and Indian economies, a country like Nepal cannot have an easy time either. However, Nepal is in a very uncertain situation in presenting its annual budget. Industrialists have been pressing major political parties to make some sort of a consensus possible on the economic agenda. It seems that consensus remains to be an elusive mirage. This shows Nepal’s challenges in the way to maintaining growth. With the dissolution of the Constituent Assembly, there is a widespread controversy over whether the present interim government can bring a full-fledged budget or not. In its decision, the Supreme Court  has made it clear that the caretaker government cannot bring a full-fledged budget. It directed the authorities to work under the interim constitution. Although Nepal’s political situation is still in a mess, we have decided to take a look at the overall economic performance of Nepal. Along with this, we have covered political and other relevant issues in this issue.

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