Nepal | July 07, 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:

Nepal Covid-19 Update: 180 new cases, 264 recoveries, one death recorded on Monday

KATHMANDU: Nepal’s Health Ministry, in its regular press briefing, shared the latest updates on coronavirus contagion from across the country, and government’s response to the health crisis. As of today, 255,728 tests through Polymerase Chain Reaction (PCR) method and 311,724 Rapid Diagn Read More...

Sushant Singh Rajput's last film Dil Bechara's trailer released Monday

KATHMANDU: The trailer for the last movie -- Dil Bechara -- of late Indian actor Sushant Singh Rajput has been released posthumously. Shooting of the movie -- based on the 2012 English-language novel 'The Fault in Our Stars' by John Green -- had been completed and was scheduled to be originally r Read More...

Ronaldo scores from free kick, Buffon breaks record in Juve win

TURIN: Cristiano Ronaldo finally scored from a free kick for Juventus and goalkeeper Gianluigi Buffon made a record 648th Serie A appearance as the league leaders beat their smaller neighbours Torino 4-1 in the Derby della Mole on Saturday. Ronaldo curled his shot over the wall and into th Read More...

K-drama star Woo Do-hwan enlists, Monarch co-star Lee Min-ho posts photo of them with Woo's shaved head

KATHMANDU: K-drama star Woo Do-hwan enlisted in the army on July 6. He joined the 15th Infantry Division at the new recruit training centre in Hwacheon, Gangwon Province. Soompi reports that Woo waved goodbye to fans and press outside on his way to the centre. Woo's label Keyeast also released Read More...


Police can apprehend anyone without mask in public places in Nepal

KATHMANDU: Authorities will now apprehend anyone that steps out in public without a mask. The Home Ministry issued a directive on Monday according to which law enforcement authorities can nab anyone who goes out of house without a mask. Going out of house sans mask will be treated as an offense a Read More...

Royal Mint pays tribute to singer Elton John with commemorative coin

KATHMANDU: Britain's Royal Mint has paid tribute to the decorated British singer-songwriter Sir Elton John on July 6, with a commemorative coin, making him the the second artist to get the honour. The coin, designed by artist Bradley Morgan Johnson, depicts John's distinctive straw boater's hat, Read More...

Dwayne Johnson is Instagram's highest-paid celeb, charges roughly $1,015,000 per post

KATHMANDU: American-Canadian actor Dwayne Johnson, who charges advertisers in Instagram roughly $1,015,000 for a sponsored post, is the social media site's highest paid celebrity. According to ANI, the 48-year-old star had 189 million followers followed by Kylie Jenner with 183 million. Social Read More...

Udit Narayan completes 40 years in Bollywood, launches YouTube channel

KATHMANDU: To mark the completion of his 40 years in Bollywood, veteran singer Udit Narayan has launched his own YouTube channel. Udit Narayan, who started his career with the movie Unees-Bees in 1980, ws quoted as saying by IANS: "This industry has been kind to me. It has given me everything. An Read More...