Econometric Budget Analysis of Remittance Inflow and Economic Growth of Nepal

Subas Gautam , Dr V.B. Singh

This paper examines how Nepal's annual budgets affect the country's economic development. Various econometric models, including linear, log-linear in a single equation system, multiple forms, and the Granger Causality test (1969), which employs annual data from 1974/75 to 2017/22 in both current and constant terms, are used to introduce the defining macroeconomic variables. According to the respective high average elasticity coefficients of manufactured GDP, GDP, GNP, and PCI, development expenditure plays a significant role in development. Due to the country's excessive reliance on foreign aid and the minimal role internal borrowing and revenue play in the economy, the country faces significant debt service obligations each year, necessitating an increase in tax burden.