Expatriates from Nepal send money to Nepal, and foreign ads are significant sources of the Nepalese economy. Nepal is one of the world’s least developed countries, relying heavily on foreign help. Agriculture is the most important sector of the economy, employing over 70% of the people and accounting for 33% of GDP.
Tourism has continuously grown in prominence and is a significant source of revenue in Nepal, which is home to the world’s tallest mountains. In addition, the country has been seeking to maximize the use of hydroelectric power. Despite the fact that the Nepalese economy has been steadily developing in recent years, the absence of political institutions, the expanding population, and the lingering effects of social instability are sources of concern.
How Can The Government Of Nepal Increase The Growth Rate Of The Country?
Nepal is a developing country and mainly depended on money transfers to Nepal from abroad. It has an insufficient per capita income, and almost a third of the population lives in poverty. Economic growth and prosperity are in short supply. Foreign dependency and internal leakages have prompted the administration to consider another revenue-generating option. Furthermore, Nepal’s budget deficit has been growing as a result of increased expenditures and inadequate revenue performance. Nepal has also been dealing with an increase in the amount of foreign debt it owes.
The government of Nepal’s resource shortfall has been growing at an alarming rate. For the expanding national expenditure, the government controls funds from both internal and external sources. As a result, in order to increase government revenue, it is important to increase the government’s internal revenue sources. There is no consensus on the tax technique for taxing corporations, the rate of depreciation, the use of an appropriate type of tax incentive, or the treatment of taxes on inflation. As a result, it is a serious issue for the entire country. More precisely, this research will look into the role of tax revenue in revenue collecting. Online money transfers to Nepal through remittance and foreign direct investment (FDI) are not enough to balance the country’s economy.
What Are The Major Supporting Factors To The Economy Of Nepal?
In December 2019, Nepal’s tourism revenue was 724 USD million, up from 703 USD million the previous year. The Tourism Revenue data for Nepal is updated on a yearly basis and is available from December 1990 to December 2019. The statistics ranged from a high of 724 USD million in December 2019 to a low of 59 USD million in December 1991. Annual Tourism Revenue in USD is provided by the Ministry of Culture, Tourism, and Civil Aviation. The second most significant factor is expatriates who send money to Nepal online to their families because families directly receive this money. There is no chance of corruption, which is a significant source to reduce poverty in the country.