Pokhara. The overall economic and financial condition of Gandaki Province has been gradually improving in recent years.

According to a study conducted by Nepal Rastra Bank, economic growth, expansion of banking access, increase in digital transactions and high share of capital expenditure indicate that the province’s economy is moving towards expansion.

The Gross Domestic Product (GDP) of the province is estimated to be around Rs 548 billion. The province has 8.97 per cent share in the national economy.

The economy grew at 5.51 percent and the per capita income was $1,619.

The contribution of the service sector is 55.8 percent. The primary sector is 27.8 per cent and the secondary (industrial) sector is 16 per cent. The contribution is limited to 4 percent.

There are 1,392 branches of banks and financial institutions in the province. There are 606 branches of commercial banks, 189 branches of development banks, 36 branches of finance companies and 561 branches of microfinance institutions.

Each branch serves an average population of 1,772 people. This shows that access to finance is expanding.

The use of digital banking has increased significantly. The number of mobile banking users has reached 3 crore 15 lakh 872 while the number of internet banking users has reached 2 lakh 96 thousand 759. Similarly, debit card users have reached 1,345,638 and credit card users have reached 21,859.

The total deposit in the province has reached Rs 661.90 billion and loan investment has reached Rs 362.82 billion.

The concessional loan is Rs 5.61 billion. This has helped small and medium enterprises.  The total budget of Gandaki Province for the fiscal year 2082/83 is Rs 3,197.99 crore.

Of the total budget, capital expenditure is 59.70 per cent, current expenditure is 39.50 per cent and financial management is 0.80 per cent.

Revenue is estimated at Rs 1,799.64 crore, grants at Rs 1,223.36 crore and internal debt at Rs 175 crore.

In the fiscal year 2081/82, the total expenditure of the state government reached Rs 2,292.07 crore. Out of this, capital expenditure is Rs 1,499.33 crore and current expenditure is Rs 792.75 crore.

Revenue accounts for 56.27 per cent of resource management, 38.25 per cent of grants and 5.48 per cent of internal debt.

According to a study conducted till mid-January, the economy of Gandaki Province is expanding based on the service sector. Expansion of banking access, increase in digital transactions and emphasis on capital expenditure are positive signs.

However, as the contribution of the industrial and manufacturing sector is still weak, there is a need to increase investment in these sectors for long-term economic strength.