Desk by Karuna
Dr. Yubaraj Khatiwada, a former finance minister, has predicted that if the government achieves its goal of 8% economic growth through the fiscal year 2079–2080 BS, the trade deficit will worsen.
On Saturday, he said that the government cannot advance toward a self-reliant economy if it solely focuses on economic growth. He was speaking at a program held on by the Madan Bhandari Intellectual Forum.
“The external sector imbalance will be twice as bad as it is now,” he warned, predicting that economic growth will reach 8%.
Khatiwada stated that there is a current imbalance of Rs. 3 trillion and suggested that if the external sector is to be maintained in balance, the economic growth rate should be limited to 2%.
According to Khatiwada, effort should be directed to maintaining financial stability by creating conditions that would lower inflation by projecting economic development at a reasonable rate.
Khatiwada stated, “The decision today is either to maintain economic stability or to quickly put an end to fast economic growth. “The government needs to use caution right now.”
Source: OnlineKhabar
