Kathmandu, Oct. 4: Dashain makes the economy vibrant as people of all walks of life across the country go on a shopping spree. They buy foods, meat and clothes, no matter how poor or rich they are.
People spend a huge amount of money to buy the non-food items ranging from clothes to vehicles which make the economy more vibrant during Dasahin festival, said Hem Raj Regmi, Deputy Director General, Central Bureau of Statistics (CBS).
One of the major features of Dashain in Nepal is mass movement of people from the capital city to their home towns, resulting in a huge financial transaction in the transport sector, he said.
The festive period is the most important period for the Nepali economy as most of the consumer-spending occurs during this period, he said, adding that the people spend a huge amount of money to purchase vehicles, mobile phones, household equipment and others.
An average of one fourth of the annual household consumption is spent in Dashain and Tihar festivals, Regmi told The Rising Nepal.
The CBS projected that around Rs. 2,400 billion will be spent on household consumption in the current fiscal year as the annual growth of expenditure has increased in line with country growth.
As per annual household consumption survey 2016/17, annual household consumption expenditure was Rs. 2,033 billion.
Monthly household expenditure will be at Rs. 200 billion, but the expenditure of household will increase by three times and reach Rs. 600 billion in festival, he said.
Regmi said that expenditure for food items increased only by 10 per cent during the Dashain while expenditure for non-food items increased by 50 per cent compared to normal period.
As per the household consumption survey, the people spend 54 per cent for foods, 4 per cent for alcohol, 13 per cent for house rent and 29-30 per cent for non-food, including health, education, wearing items and vehicular items. Per household spend reaches Rs. 322,000 for consumption yearly.
The high class family spends only 20 per cent for food consumption and 80 per cent for non-foods while lower and medium family spends 65 per cent for food consumption and 35 per cent for non-foods items.
Nepali customers are known for their insatiable appetite for shopping which results in a surge in sales of food and non-food items during the country’s biggest festival, said economist Dr. Chandra Mani Adhikari.
In the festival period, the sales of non-food items, including, jewelry, vehicular items, alcohol, soft drinks, television, washing machine and freeze go up as the traders also offer discount in the purchase of these items, he said
Likewise, the business of airlines, public transaction, hotel and restaurant also increases which contributes to making the economy vibrant, he said.
“Consumers tend to buy new clothes and other items even though they do not need them because buying and wearing new and clothes is a practice this festival. So, the high class families spend unnecessarily in goods which do not come in consumption,” he said.
The flow of money will increase in the county as employees will get extra salaries in Dashain and foreign workers also send money to their family for celebrating festival which contributes to make the economy vibrant.
The positive aspect of the high demand is to increase domestic productions, including shoes, clothes, ago and other items, he said.