KATHMANDU: As of today, the final day for payments in the current fiscal year (FY), the Nepal government has spent RS 1.322 trillion.
By the same time, the government has collected only RS 1.023 trillion in revenue, non-revenue, and grants, achieving just 68.09 percent of its target.
As of Monday afternoon, with income and expenditure figures considered, the government faces a deficit of Rs 319.91 billion.
Of the total expenditure, capital spending stands at Rs 157.69 billion, amounting to just 52.2 percent of the allocated budget.
By Monday, the government has spent Rs 924.32 billion on current expenses, which is 80.93 percent of the total allocated for this category.
The government had set an expenditure target of Rs 1.751 trillion for the current fiscal year.
A mid-year budget review estimated that only 87.3 percent of this would be spent.
Capital expenditure status over the last 5 days:
July 4: Rs 149.93 billion (49.63%)
July 5: Rs 151.33 billion (50.1%)
July 6: Rs 153.24 billion (50.73%)
July 7: Rs 153.98 billion (50.98%)
July 8: Rs 157.69 billion (52.2%)
Consistently weak capital spending by the government:
The government has struggled to improve capital spending for a long time.
Over the last four years, capital expenditure has shown little improvement.
In the previous fiscal year 2079-80, the government spent only Rs 153.08 billion (61.44%) out of the Rs 380.38 billion allocated for capital expenditure.
Similarly, in FY 2078-79, the government allocated Rs 378.10 billion for capital expenditure, but by the end of fiscal year, only Rs 216.37 billion (57.23%) had been spent.
In FY 2077-78, Rs 352.92 billion was allocated for capital expenditure, but only Rs 228.31 billion (64.69%) was spent by the end of Asar.
Capital expenditure expected to reach 60 percent
Despite capital expenditure being limited to 52 percent as of Monday, the Ministry of Finance estimates it will reach 60% by the end of the fiscal year.
Ministry spokesperson Uttarakumar Khatri told Khabarhub that the final day’s capital expenditure is expected to reach 60 percent.
He mentioned that reallocations from underutilized categories to those with higher spending are ongoing.
It is difficult to predict the total reallocated amount, he added.
“Currently, we are reallocating funds from underutilized categories to those with higher expenses. My estimate is that capital expenditure will reach around 60 percent,” he said.
Information Officer at the Office of the Comptroller General, Om Prasad Rijal, said that bills not processed for payment by 5 pm Monday would require a government decision before payment.
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