Nepal | July 02, 2020

Govt yet to spend almost 50pc of development budget for 2018-19

Himalayan News Service
Share Now:

Kathmandu, July 9

With just one week for the ongoing fiscal year to end, the government is yet to spend almost half of the development budget allocated for this year, thereby reflecting the inability of the ‘comparatively powerful’ government to expedite project development throughout the year.

The statistics maintained by the Financial Comptroller General Office (FCGO) show that the development budget expenditure of the government so far (till July 9) stands at 56.35 per cent or Rs 179.7 billion of the Rs 313.99 billion allocated for fiscal year 2018-19.

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 government’s failure to expedite project development and enhance its spending capacity.

But even if we go with this revised target, government is still to spend over Rs 85 billion within next one week to meet development expenditure target.

However, the government’s total budget spending, including capital expenditure, financing and recurrent, till today stands at 72.15 per cent of the total budget of Rs 1.31 trillion for the ongoing fiscal.

The government so far has been able to spend Rs 677.07 billion as recurrent expenditure of the total allocated Rs 845.45 billion during the review period. The recurrent expenditure is primarily the spending of the government on noncapital formation programmes such as salaries of government staffers, social security and other expenses.

Likewise, the government has been able to spend Rs 92.13 billion on financing till today, out of the total allocated budget of Rs 155.72 billion for the ongoing fiscal.

Economist Bishwo Poudel said that the slow spending of the budget is the result of lack of proper project planning, weak policy execution capacity of the bureaucracy and weak project execution capacity of contractors.

“Initially we thought that timely fiscal budget would enhance the spending capacity, but it did not, which proves that timely budget announcement has only marginal relationship with the government’s spending.

The problem lies in the project planning and execution capacity of Nepali bureaucrats,” said Poudel, adding that the government should also take necessary decisions to enhance the capacity of contractors.

As the government is obliged to spend a huge chunk of money at the end of the fiscal year, Poudel warned that the government should control haphazard spending.


A version of this article appears in print on July 10, 2019 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

35 per cent paddy plantation completed in Banke, 55 per cent in Bardiya

NEPALGUNJ, JUNE 30 Most of the farmers generally start paddy plantation from June-end, but this year nearly 35 per cent paddy plantation has been completed in Banke and 55 per cent in Bardiya. “Around this time last year, farmers had completed only 15 per cent and 40 per cent paddy plantatio Read More...

Would 'pool testing' as a Covid-19 screening approach make sense in Nepal?

KATHMANDU: US leadership is considering a new approach -- pool testing -- to efficiently include a large number of people for Covid-19 screening in the country. The new approach is also known as batch testing in which swab samples are tested in batches instead of running them one by one. The t Read More...

Jhapa

Residents of village beyond Mechi River left in lurch

JHAPA, JUNE 30 With the onset of monsoon, locals of Dolobasti village located beyond the Mechi River have been left in a lurch due to lack of bridge over the river in Jhapa. Dolobasti, home to 300 families in Ward 3 of Bhadrapur Municipality is located beyond the Mechi River. Indigenous peo Read More...

PM Oli attends health ministry's high-level ICS meet

KATHMANDU: Prime Minister KP Sharma Oli has attended the health ministry's high-level incident command system (ICS) meeting at his official residence in Baluwatar today. According to Minister for Health and Population, Bhanubhakta Dhakal, the ICS meetings that are being held on Sundays and Wednes Read More...

Investable resources get frozen in banks amid low credit demand

KATHMANDU, JUNE 30 Owing to the months-long lockdown which has discouraged the demand for credit, the investable budget with banks is not only increasing but also getting frozen. While banks are witnessing a rise in deposits, their credit flow has come down drastically. As a result, a huge Read More...

More than 1,500 Nepalis repatriated

KATHMANDU, JUNE 30 Over 1,500 Nepalis were brought home today via eight repatriation flights. According to Tribhuvan International Airport (TIA), a total of 1,519 Nepalis were evacuated along with 11 dead bodies from five countries. Among the total flights, Nepal Airlines Corporation (NAC) Read More...

DNA test shows skeletal remains were journo’s

BAJURA, JUNE 30 DNA report of the skeletal remains, which were found in Budhinanda Municipality, Bajura, a few months ago, has confirmed that they were of missing journalist Teju Khadka of Dipayal-Silgadi Municipality, Doti. The journalist used to work as manager of Radio Budhinanda, Bajura. H Read More...

NMB Bank signs mandate with IFC

KATHMANDU: NMB Bank Ltd has signed a repeat loan mandate with International Finance Corporation (IFC), a member of the World Bank Group, for IFC loan of $25 million. NMB has become the only Bbank in Nepal to receive consecutive financing from IFC over a span of two years, as per a media release. Read More...