KATHMANDU, June 15: The government spent only 32.53 percent of the amount allocated for development projects, with just one month left for the completion of the current Fiscal Year (FY).
As per the records with the Financial Comptroller General Office (FCGO), the government spent mere Rs 132 billion out of the budget of Rs 478 billion allocated under capital expenditure as of Sunday, the last day of 11-months. It shows that the government has a challenge to utilize the remaining 67.47 percent of the budget in just one month.
Almost every year, the government faces pathetic utilization of the capital expenditure. As per the FCGO, the 11-months’ development expenditure this year was even lower than the proportionate of the amount spent in the same period last year. In 11-months of FY 2024/25, the utilization of the development budget stood at Rs 144.48 billion (41.01 percent).
Expediting Capital Expenditure
While the slow capital expenditure is taking a toll largely on the development projects completion of the country, an even worse part is the last hour rampant expenses made by the government. In the FY 2024/25, the government spent Rs 15.42 billion in the last two weeks, raising the question on the quality of the construction projects.
In the review period this year, the government exhausted 76.91 percent in recurrent expenditure. Out of the allocated amount of Rs 1.180 trillion, the utilization was Rs 908 billion under the heading.
Similarly, the highest proportion of 81.47 percent has been spent on financial management. Out of the Rs 375 billion allocated under the heading, the government utilized Rs 305 billion in debt servicing. This shows that the government is focusing a large part of its budget on administrative expenditure and debt management rather than development.
Along with the expenditure, the government's revenue collection also appears weak in the 11 months of the current FY. Only 73.06 percent of the target revenue has been generated as of Sunday. Out of the target of collecting Rs 1.48 trillion in revenue, only Rs 1.081 trillion has been collected so far. To meet the target, revenue of about Rs 400 billion will have to be generated in the remaining one month.
Similarly, the government has so far received only Rs 22.88 billion in grants. The government has set a target of receiving Rs 53.44 billion in foreign grants.
