Kathmandu, Nov 2: The government has spent barely 6.83% of its development budget three and a half months into fiscal year 2083/84, raising concerns over its ability to deliver infrastructure projects on schedule.
Overall expenditure has reached 19.65% of the Rs 2.124 trillion annual budget. By November 14, the government had spent Rs 417.42 billion, according to the Financial Comptroller General Office.
Capital expenditure stands at Rs 29.46 billion against an allocation of Rs 431.10 billion, leaving more than 93% of the development budget unused.
The sluggish spending comes despite the government’s 100-point governance reform action plan, which aims to accelerate economic activity. The figures also expose the gap between its reform commitments and the performance of government agencies.
Finance Minister Dr Swarnim Wagle allocated Rs 1.270 trillion for recurrent expenditure, Rs 431.10 billion for capital spending and Rs 422.64 billion for financial management in the budget presented on May 29.
By November 14, recurrent spending had reached Rs 305.21 billion, or 24.02% of its allocation. Financial management expenditure stood at Rs 82.74 billion, or 19.58%. Development spending has therefore lagged considerably behind routine government expenses.
Gokul Bastola, joint financial comptroller general and spokesperson, attributed part of the slowdown to natural disasters. Floods in the Bhotekoshi and Trishuli rivers in Rasuwa on August 26, followed by floods and landslides in the Kaligandaki and Budhigandaki areas, disrupted the initial phase of budget implementation.
Bastola expects spending to improve after the Tihar and Chhath festivals. However, recurring administrative and procedural hurdles continue to hold back capital expenditure. Delays in project selection, incomplete feasibility and detailed project reports, land acquisition disputes, lengthy procurement processes, weak contractor performance and payment delays have repeatedly obstructed development spending.
The low expenditure threatens timely implementation of road, bridge, drinking water and irrigation projects. It also raises questions about the government’s ability to translate budget allocations into completed infrastructure.
The pattern mirrors the previous fiscal year, 2082/83, when more than a dozen ministries had spent less than 30% of their capital budgets even towards the end of the year. Budget freezes, procurement delays and poor project preparation were among the main reasons.
Unless these bottlenecks are addressed, the government risks repeating the familiar cycle of sluggish spending during the first part of the fiscal year, followed by a rush to exhaust allocations in the final months.
People’s News Monitoring Service
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