Nepal | November 24, 2020

Govt expenditure at 12.37pc

Only 3.42 per cent of total allocated budget of Rs 311.95 billion for development works spent in the first quarter of current fiscal year

Himalayan News Service
Share Now:

Government expenditureKathmandu, October 17

Only 12.37 per cent or Rs 129.72 billion of the total budget of Rs 1,048.9 billion was spent in the first quarter (mid-July to mid-October) of current fiscal 2016-17, as the capital expenditure remained low like in the previous years.

The government has been failing to increase capital expenditure — the money that goes into development works and merely 3.42 per cent of the annual allocation of Rs 311.95 billion was spent during the review period, according to Financial Comptroller General Office (FCGO).

Though the government has aimed to achieve high growth of 6.5 per cent by accelerating development works and post-earthquake reconstruction, which is a major priority of the fiscal budget, implementation in the first quarter has not been encouraging.

Normally, capital expenditure remains low in first quarter compared to other quarters as the government entities take few months to settle the procurement process and award contracts.

“The capital expenditure is expected to rise in the coming months as the physical progress of the development projects gathers pace,” said Kewal Prasad Bhandari, deputy financial comptroller general. Only Rs 10.67 billion of the
capital budget was spent in the review period.

Last year, too, a large chunk of capital budget worth Rs 91.27 billion remained unspent because of the unfavourable situation caused by the supply line disruptions for four-and-a-half months in the last fiscal. Slow progress of development projects has been raising the cost of the projects.

In the review period, the government spent Rs 117.95 billion in salary payment of civil servants, grants to local bodies and debt servicing under recurrent expenditure heading. As per FCGO, 19.11 per cent of the total annual allocation under recurrent expenditure heading was spent. The fiscal budget has allocated Rs 617.16 billion for recurrent expenditure.

Of the Rs 119.81 billion earmarked for financing provision, the government spent 0.92 per cent on investment in state-owned enterprises and for principal repayment.

On the brighter side, the government has collected 22.45 per cent of the annual revenue collection target in the review period. The government collected Rs 127.04 billion in the first quarter against the target of Rs 565.9 billion for this fiscal.

 


A version of this article appears in print on October 18, 2016 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

National Examinations Board (NEB) Nepal

Grade XII exams begin today

KATHMANDU, NOVEMBER 23 National Examinations Board is all set to conduct the examination of Grade XII from tomorrow amidst the coronavirus crisis. Regular examination will be held until December 1. The NEB, after a long halt, had devised a new protocol allowing students to take the exam for Read More...

Burnley get first win with Wood strike against Palace

BURNLEY: Burnley secured their first win of the Premier League season as Chris Wood's eighth minute goal was enough to earn a 1-0 victory over Crystal Palace at Turf Moor on Monday. The result moves Burnley out of the bottom three up to 17th place, on five points from eight matches, wh Read More...

Demonstration in Gaur enters second week

RAUTAHAT, NOVEMBER 23 The sit-in and demonstration launched by local residents in front of Gaur Customs Office demanding that the border entry point, which has been closed for months, has completed its second week today. The sit-in-cum-demonstration had started from November 10 at the init Read More...

KMC

Those availing free PCR test to be disqualified from insurance

KATHMANDU, NOVEMBER 23 Kathmandu Metropolitan City Mayor Bidya Sundar Shakya had announced two days ago that the metropolis would conduct free PCR tests for coronavirus. While the mayor’s announcement is unlikely to be implemented anytime soon, it is learnt that people undergoing such free P Read More...

Border closure affecting marriages

NEPALGUNJ, NOVEMBER 23 Twenty-year-old Rina Ali Shaiyad’s marriage has been stalled for months now. Scheduled to tie the knot with a man across the border in April, her plan went awry owing to the lockdown enforced by the government in the face of the coronavirus pandemic. As uncertainty Read More...

Editorial: Rape is unreconcilable

The new provision in the ordinance will discourage village leaders from settling rape cases outside the court of law The council of ministers on Sunday took the decision to issue an ordinance by making amendments to three laws related to Criminal Code-2074, the Act related to Senior Citizens-2063 a Read More...

Respect farming: No food, no life

Focussing on the bottom-up approach in extension can somehow develop the feeling of ownership among farmers. The Nepali agriculture extension system is showing slow progress because there’s a lack of coordination between the different units working for the same sector “ What do you want to be i Read More...

Dying language

Some time ago the media lamented on the precarious fate of the Magaraa language in Province 1. With over 125 dialects and languages, it is hardly surprising that many of them will become extinct for lack of use for several reasons, including domination of the Nepali and English languages. The Mao Read More...