Nepal | July 07, 2020

Capital spending at 73 pc in 2018-19

Experts urge enhancing capacity of bureaucrats, contractors

Himalayan News Service
Share Now:

Kathmandu, July 16

With the new fiscal year to begin from Wednesday, the government has been able to spend merely 73.4 per cent of the development budget in fiscal year 2018-19, which ends today.

As per statistics maintained by the Financial Comptroller General Office (FCGO), the government has been able to spend Rs 230.4 billion by today evening during the fiscal year or 73.4 per cent of the Rs 313.99 billion development budget allocated for 2018-19.

Though the government has been claiming to have simplified public procurement process and other policies to boost spending on development works, inability of the government to spend more than 26 per cent of the allocated capital expenditure has reflected problems in government spending and sluggish progress in development works throughout fiscal 2018-19. Moreover, the sluggish spending has also reflected the inability of the ‘comparatively powerful’ government to expedite project development throughout the year.

The Ministry of Finance (MoF) had revised downwards the capital budget for the ongoing fiscal to Rs 265.20 billion through the mid-term review report of the budget for fiscal year 2018-19 following the government’s failure to expedite project development and enhance its spending capacity. Meanwhile, the government has also failed to meet the revised capital expenditure too.

However, the government’s total budget spending, including capital expenditure, financing and recurrent, in the fiscal year 2018-19 stands at 82.34 per cent of the total budget of Rs 1.31 trillion for the fiscal year.

The government, in 2018-19, has been able to spend Rs 711.3 billion as recurrent expenditure of the total allocated Rs 845.45 billion during the review period. The recurrent expenditure is the spending of the government on non-capital formation programmes such as salaries of government staffers, social security and other expenses.

Likewise, the government has been able to spend Rs 141 billion on financing in 2018-19, out of the total allocated budget of Rs 155.72 billion for the ongoing fiscal.

Citing that the mounting pressure to spend a huge amount of the budget at the end of fiscal year will promote haphazard spending and also affect project development, experts have suggested the government to improve the bureaucratic and contracting mechanisms in Nepal in a bid to ensure effective capital budget expenditure.

Similarly, they have also stressed on the need to focus on project planning and policy execution to expedite projects and improve spending of the government.

“The government should invest in enhancing the capacity of Nepali bureaucrats and also contractors. Lessons should be learnt to ensure effective spending in the new fiscal year and thereafter,” said Bishwo Poudel, an economist.

A version of this article appears in print on July 17, 2019 of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Nepal Tourism Board reveals top five photos from 'Nepal From Your Window' contest

KATHMANDU: Nepal Tourism Board (NTB) on Sunday revealed five photos that made it to the top-five of the 'Nepal From Your Window' photo contest. The five photos will be awarded with cash prize of Rs 10,000 each. Among the 500 approved photos listed in the contest, Samde Sherpa's Kathmandu V Read More...

Sudurpaschim PA continues amid obstruction

DHANGADI, JULY 5 A meeting of Sudurpaschim Province Assembly started amid the obstruction from opposition parties in Dhangadi. Despite the obstruction from the opposition parties — Nepali Congress and Rastriya Janata Party-Nepal —the meeting of the PA began today. Lawmakers from the opp Read More...

Department of Transport Management

Govt accepting applications for ‘embossed plates’ on vehicles

KATHMANDU, JULY 5 The process of installing embossed number plates on vehicles, which was halted since two years, has resumed with Department of Transport Management (DoTM) opening online applications from today. Though DoTM had started the process to affix embossed number plates on vehicles s Read More...

Risk of locusts declining in country

KATHMANDU, JULY 5 The Locusts Information Centre (LIC) has stated that the risk of a new swarm of locusts entering the country is gradually declining due to the changing direction of the wind. Citing the Swarm Trajectory Prediction managed by the UN Food and Agriculture Organisation (FAO), the Read More...

604 Nepalis return home

KATHMANDU, JULY 5 A total of 604 Nepalis returned home today from three destinations. As per Tribhuvan International Airport (TIA), 147 and 152 Nepalis were repatriated from Doha in Qatar through flights of Nepal Airlines Corporation (NAC) and Himalaya Airlines, respectively. Likewise, Himalay Read More...

Water Treatment Plant, Melamchi Water Supply Project

Melamchi gears up for food sufficiency drive

MELAMCHI, JULY 5 Melamchi Municipality in Sindhupalchowk is all set to launch a campaign to promote local agricultural produce. The campaign to be launched in line with the local government’s policies and programmes for the upcoming fiscal year, seeks to motivate people to produce vegetables Read More...

Bajura school starts community classes

BAJURA, JULY 5 At a time when schools in urban areas have started online classes, a school in Bajura has started teaching students by reaching to their communities and toles. Budhinanda Basic Level School at Kolti of Budhinanda Municipality has started teaching students in their respective tol Read More...


Leading actors of the Nepali film industry opine that a space for discussion has opened up now, and no one should let this chance pass. They also urge the media to pull up their socks KATHMANDU A discourse has started after film actor Samragyee RL Shah broke her silence last week on the harassme Read More...