what might be the reasons behind development of Okhaldunga ? write your opinions
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Okhaldhunga District
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Okhaldhunga District (Nepali: ओखलढुङ्गा जिल्लाAbout this soundListen (help·info)) is one of 14 districts of Province No. 1 in eastern Nepal. The district, with Okhaldhunga as its district headquarters, covers an area of 1,074.5 km2 (414.9 sq mi) and had a population of 156,702 in 2001 and 147,984 in 2011.[1]
Okhaldhunga DistrictThe Nepal Development Update is produced twice yearly with two main aims: to report on key economic developments over the preceding months, placing them in a longer term and global perspective; and to examine (in the Special Focus section) topics of particular policy significance. The Update is intended for a wide audience including policymakers, business leaders, the community of analysts and professionals engaged in economic debates, and the general public.
Download the latest Nepal Development Update here.
Recent Economic Developments
Nepal’s economy faced headwinds in the first half of FY2020. Following three consecutive years of substantial economic expansion, with growth averaging 7.3 percent per year, Nepal’s economy experienced headwinds in the agriculture, manufacturing, and the service sectors in the first half of FY2020. The agriculture sector was impacted by a delayed monsoon coupled with an outbreak of armyworms, leading to a 1.7 percent (year-on-year) decline in paddy production. In the manufacturing sector, tightening domestic credit conditions, an increased foreign direct investment threshold, and continued low execution rates of public investment projects resulted in a contraction of investment and the number of new businesses registered. Services were impacted by the deceleration in remittances growth and lower tourist arrivals from India, leading to an overall drop in arrivals of 4.3 percent (year-on-year), and an associated slowdown in tourism receipts.
With slower economic activity, imports declined in the first half of FY2020, narrowing the external deficit but adversely affecting revenue collection. The decline in aggregate demand led to a contraction in goods imports by 3.9 percent (year-on-year) in the first half of FY2020. The contraction was broad based, encompassing construction material and machinery, industrial supplies, and food and beverages for household consumption. Services imports also contracted for the first time in four years on the back of lower travel and education service imports. At the same time, a strong goods export performance due to increased palm oil and soybean oil exports to India countered a contraction in services exports, narrowing the current account deficit by 44 percent (year-on-year). The reduction in goods imports, however, contributed to a deceleration in government revenue collection, which is heavily reliant on duties, excise, and value-added taxes (VATs) collected at the border. Between July 2019 and March 2020, revenues grew by 12.2 percent compared to the same period in the previous year, which is the lowest rate since FY2016. Government expenditure expanded by 9.4 percent over the same period due to higher recurrent spending on wages and compensation, goods and services, social assistance, and fiscal transfers.