Nepal | September 24, 2020

Govt’s capital expenditure still sluggish

Only 17.68pc of Rs 313.9 billion allocated spent in first half of fiscal

Sujan Dhungana
Share Now:

Illustration: Ratna Sagar Shrestha/ THT

Kathmandu, January 15

Development projects that are crucial in driving the economy are unlikely to witness desirable progress this year owing to the sluggish capital spending of the government.

Though the government, which is relatively stronger and more stable compared to the previous ones, had said that proper execution of the budget would be its top priority, it has failed to walk the talk if the statistics of the Financial Comptroller General Office are anything to go by.

FCGO statistics show that the government has managed to spend merely 17.68 per cent of the total allocated budget under capital expenditure in the first six months of the current fiscal, thereby signalling the fragile spending of the government.  Of the Rs 313.9 billion allocated for capital expenditure for fiscal 2018-19, capital spending stood at only Rs 55.5 billion or 17.68 per cent till yesterday.

However, the government’s total budget spending, including capital expenditure, financing and recurrent, during the period stood at 28.57 per cent of the total budget of Rs 1.31 trillion for the ongoing fiscal.

The government has spent Rs 296.5 billion as recurrent expenditure of the total allocated Rs 845.5 billion during the review period. The recurrent expenditure is primarily 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 15.24 per cent or Rs 23.7 billion on financing till mid-January out of the total allocated budget of Rs 155.7 billion for the ongoing fiscal.

“Low budget spending is not a new thing in Nepal and will not improve unless the government, especially the Ministry of Finance, comes up with a proper budget execution plan and implements it,” said an industrialist on condition of anonymity, adding that sluggish spending adds pressure on the government to spend more towards the last couple of months of the fiscal year raising questions over the quality of expenditure of the budget.

The government has been able to collect revenue worth Rs 520 billion in the first six months of the fiscal 2018-19, which is 55 per cent of the revenue collection target of Rs 945 billion for this fiscal, as per FCGO.


A version of this article appears in print on January 16, 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...