Sunday, June 9, 2013


Man and women were the first were creation of god. It is said that woman was created for the companion of man. This trend is the same still among human beings. Man and woman are companions to each other. However, this is the man who considers woman as inferior race. Man dominates woman. Men wrong are excused, but wrongs done by women are hardly excused. Most important role of woman has been ever considered as housewife. She takes care of her family.
Nevertheless, status of women is changing all the time. She has obtained her position at home as well as outside. She works outside in an office or working place like industry. She can earn money and support the family. We can see that a woman can work more than man. Besides education has made women much forward. Education has made her much more conscious. This, in turn, has brought a great changed in her economics, social-cultural, political and legal status.
Law has been made for provision of share of father property if she remains unmarried. Certain number of seats has been preserved in parliamentary election and also in election of local bodies. To sum up, I believe that economic, social-cultural, political and legal status of woman is ever changing in Nepal.


Public finance is often is called as government finance. It is related to the management of government income and experiment as well as financial administration and control in the line of resources allocation.
Importance of Public Finance
Public finance is regarded as the most useful and powerful tool of public authority to accelerate and direct the course of economic development of a nation. It aims to maintain economics stability, ensures economic equality and social justice, removes economic maladies and stimulates healthy economic growth in an economy.
1)    To develop agricultural and industrial production by implementing subsidies tax and credit policies.
2)    To minimize disparity in living standard between rich and poor.
3)    To maintain Economic and price stability.
4)    To accelerate the course of economics development.
5)    To achieve favorable balance of trade and payment.

Public revenue
Pubic revenue means income of a government from various sources. In the early days of human civilization, the role of government was limited.
A government of 21st century has it perform socio-economic function to establish economics stability, to attain high economic growth and to maintain law and order in the country. In order to carry out these types of functions, it has to collect large amount of revenue from sources.


Public Enterprises refer to government business organization where there is at least 51% of shares of government. Their objective is to provide basic necessities such as water, electricity, and services such as health education etc to the people. Those are the duties of a welfare state.
Nepal bank limited is established in 1937 is regarded as the first modern public enterprise. There is all together 37 public enterprises in Nepal. The objectives of public enterprises are given below
1)    To achieve economic development in balanced and organized manner by providing basics infrastructures.
2)    To distribute consumption goods reasonable price by improving its quality.
3)    To established large and nonprofit oriented organizations which are beyond the capacity of private sector.
4)    To help generate national revenue.
5)    To earn foreign exchange.
6)    To generate the employment opportunities.
7)    To obtain economic, political and social objectives of the nation by mobilizing available capital and labor resources.    

  The importance of public enterprises is very high in developing countries likes Nepal. The private sector does not have huge resources and does not want to take higher risks. The established of  enterprises can help in creating a strong foundation for modern industries economy and help the country in achieving self sufficiency in industrial  and technical know how.


The bank can be classified into following type
1)    Commercial Bank
       The commercial bank is the oldest type of bank. In general, the term is used to mean a commercial bank. The main objective of this bank is to earn profit. This types of bank was initially established to provide short-term loans to the traders. Hence, this bank is called commercial bank. Nepal bank ltd is Nepal first commercial bank. Now there are 32 commercial banks in Nepal.
2)    Central Bank
         A central bank is established in every country. This bank is established under complete government ownership.
The main function of its to issues notes and coins. Nepal Rastra Bank established in 1956 is the central bank of Nepal. The main function functions of a central bank is to issues notes and coins.
3)    Agriculture bank
          The bank established for the development and modernization of agriculture sector is called agricultural bank. Since, it is established as specialised institution for the development of agriculture, it is also known as development bank.
4)    Development Bank
          Banks established for the development of agriculture, industry, tourism, and mining are known as development banks. In Nepal separate development banks have been established in the private sector since 1998.

Primary function of commercial bank

Commercial banks accept deposits from customers in from customers in fixed, saving and current account and provide credit under the headings of cash credit, overdraft, loan and discounting bills of exchanged.
Secondary functions
Secondary function is also known as agency function which comprises collection of credit instruments, income receiving and payment, purchase and sale of securities, trustee and attorney and remittance of money.
Contingent functions
The contingent functions of commercial bank are also known as incidental or general utility functions which comprises safety of valuable goods, such as gold, diamond and valuable document, issues the credits instrument such as letter of credit traveler cheques etc .
Capital market
Capital market is a mechanism through which long term funds are loaned and borrowed in trade, commerce and industrial sector. Long term securities such as bonds, shares and debentures are traded in capital market. Generally, capital market provides loan facility to the business sector for more than one year.
Money market
Money market is a mechanism through which short term funds are loaned and borrowed in trade, commerce and industrial sector. IT refer  to the activities of financial institutions to meet the  demand and supply of money for the specified period.


The role of banking system in the economy can be explained under the following headings.
1)    Mobilisation of savings
         The banks encourage thriftiness and save more among people. The men can be free of the future anxity when do not have income on account of savings.
2)    Capital Formation
          The capital formation is crucial for the economic development of a country. The less developed countries likes Nepal are suffering from low capital formation. The bank collects idle money from people.
3)    Promotion of Employment
          The unemployment  is a serious problem, which may result into severe social political and economic consequences. In Nepal, pressure of population on land is high. A large share of labour force is unemployed and under employed. The bank helps to relieve the economy from the pressure of unemployent. The banks provides loans to business, entrepreneurs and farmer in different forms.
4)    Upliftment of poor

           The banks make available loans to rural people on reasonable rate of interest. This helps farmers to understand agricultural and non agricultural  works. The small farmer development project, small sectors development programme, small and cottage industries project, micro credit project have been implement by agricultural development bank and commercial bank in Nepal for the upliftment of the poor.

Function of central bank

The function of central bank is given below
1)    Monopoly of notes issue
2)    Government bank
3)    Bankers bank
4)    Lender of the last resort
5)    Clearing house function
6)    Control of credit
7)    Development function

Monopoly of notes issue
                 The central bank is given the monopoly right to issue the note in every country. Central bank issues all together 11 types of notes.
At present, central bank issues coin also. The notes are issues against the fixed %reserve of gold, silver and foreign currency so as to check the over issues of paper money.

Government bank
              The central bank works as the banker, agent and advisor of the government. The bank provides banking services to the government as the services provided by commercial bank people. The bank maintains government account.

Banker of bank
            The central bank works as the banker of other banks. The rights of supervision, control on other banks for the sound development of the banking system in the country lies with central bank. The commercial bank have account in central bank.


Foreign trade refers to exchange of goods from one country to another. There are mainly two components foreign trades. They are export and import. Export refers to the situation where a country supplies surplus goods to other countries. On the contrary, import refers to that situation where a country demands deficit goods constitute the foreign trade of a country concerned.
Nepal is an underdeveloped country with an agrarian economic base. Nepal has no adequate production of agricultural as well as industrial goods. Thus, Nepal imports various goods from India and overseas countries required for the consumption and production.  Similarly, surplus good produced in Nepal are exported to other countries of the world. Such export and import of goods constitute foreign trade in Nepal. Thus from this discussion we can define precisely foreign trade that it refer to the transaction of goods and services between two or more countries which incorporates export and import. If the goods are exchanged within the country itself it is called domestic trade.
The history of foreign trade of Nepal is as old as the history of Nepal. In ancient times Nepalese goods were exported China and India. Imports were also made from these two countries. At present also, these two countries which lies in the North and south of Nepal are its major trade partners.


Development bank

 Development banks are established to develop agriculture, industries and infrastructure and employment opportunities to some extent. In case of Nepalese economy, development banks are providing their services in the following sectors.
A)     The fundamental objective of agricultural t bank development is to provide financial support to needy farmers for the modernization and commercialization in agriculture. However, recently this bank has started to provide its service to commercial services. This bank provide loan at subsidized int est. rate than other commercial banks. Agricultural development bank in Nepal was established in 2024BS. At present, some of its branches provides commercial services in the city area as well.
B)      Industrial development bank
The bank, which is established to accelerate and promoter the process of industrial in the country, is defined as industrial bank. Industrial bank provides short term, medium term and long term loan for the purchase of fixed assets and variable factor of production. It stands as the backbone of industrial sector to expand and modernize the small, medium and large industries of agricultural, transport, communication, education.
It is also known as investment bank. There are two industrial banks in Nepal.
C)      Rural development banks
The concept of rural development banks was development in Bangladesh in 1976AD. It provides banking services banking services to the poor people of rural areas. It also mobilizes small savings, provides credits to marginal farmers or people of suffered classes without tangible deposit.

Generally, it provides short term credits in income generating activities. Rural development bank in Nepal was introduced in 2049BS.There are five regional rural development banks in Nepal.     


Agriculture is regarded as the primary sector of the Nepalese economy. It is the chief occupation of about 65.5% of the total working population of Nepal and contributes about 32.32% of GDP of Nepal. Major portion of Nepal export trade depends on agriculture. It is estimated that about 18%of the total land area of the country is under cultivation. Growth rate of agriculture is 4.9%.The irrigation facility is in Terai (80%) region followed by the Hills (15%) and Mountain (5%) regions.  75 % of the total holding the country are below one hectare and only 8%of holdings are above three hectares. The total area under food crops farming is estimated to be 76%. The cash crops occupy 24% of the total  area.
Agricultural productivity level in Nepal is far below compared to other developed countries. Low productivity has resulted because of inferiors seeds, traditional methods of farming, lack of irrigation  facilities, low of education, awareness, and lack of necessary information.

The importance of agriculture in the economics development of Nepal is very high. It is the primary sector of the economy providing the basic necessities for the existences of people.