Nepal | September 24, 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:

As US surpasses 200,000 COVID-19 deaths, Wisconsin sounds alarm over surges in cases

NEW YORK: Wisconsin Governor Tony Evers on Tuesday declared a new public health emergency and extended a face mask mandate into November to fight a coronavirus flareup in his state, as the number of people who have died across the United States since the pandemic began passed 200,000. In-pers Read More...

Govt urged to implement apex court’s order on jailbirds

SC order aims to avoid crowds in prisons KATHMANDU, SEPTEMBER 22 The National Human Rights Commission has urged the government to implement provisions stipulated in the Criminal Offences (Determination and Execution of Sentence) Act-2017, for improvement of prison conditions. The NHRC made th Read More...

Code of conduct vital in journalism: Prez

KATHMANDU, SEPTEMBER 22 President Bidhya Devi Bhandari has called for journalists to fully abide by the code of conduct for consolidation of democracy. Addressing the 51st anniversary of the Press Council Nepal in Shital Niwas here today, the head of the state underscored the need of compl Read More...

Probe into prisoner’s death sought

KATHMANDU, SEPTEMBER 22 Kin of a prisoner, who allegedly died of COVID-19 while undergoing treatment at Bir Hospital, have demanded investigation into the death. Ram Lakhan Jaiwal, 63, of Siddhartha Municipality-5, Rupandehi died at the hospital on Saturday. He had been serving sentence in the Read More...

Attempts to dismiss rape exposed, ward chair chased off

BARA, SEPTEMBER 22 There are reports of attempts to cover up a rape incident in Subarna Rural Municipality, Bara. What is worse, an elected local representative is learnt to have been involved in such attempts. On Friday evening, a 12-year-old girl was raped in Auraiya in Subarna Rural Municip Read More...

Schools in Byas moot possibility of physical classes

DAMAULI, SEPTEMBER 22 Byas Municipality today held a meeting with head teachers and principals of community and private schools to find a way for reopening schools that have been shut for a long time due to COVID-19. The municipality held a meeting to discuss the possibility of opening sch Read More...

126 lost lives in Gandaki landslides, floods this monsoon

POKHARA, SEPTEMBER 22 As many as 126 people lost their lives to natural disasters such as floods and landslides in Gandaki Province this monsoon. Gandaki Province Minister of Internal Affairs and Law Hari Bahadur Chuman said that most of the casualties happened in Myagdi and Baglung districts. Read More...

Probe panel recommends action against three cops

DHANGADI, SEPTEMBER 22 A probe committee formed to investigate the death of Amar Bahadur Chand, who died in Kailali Police Custody, has recommended action against three police personnel. Chand had died in the toilet of Bahuliya Border Police Post on August 12. The probe committee led by SP Raj Read More...