Government spending surges by 15% in last month of fiscal year, reaching Rs 240 billion in 31 days

KATHMANDU: In line with previous years, the Government of Nepal significantly ramped up its spending in the final month of the fiscal year. According to the Office of the Comptroller General, the government spent over Rs 240.68 billion in Asar (mid-June to mid-July) alone, nearly 15% jump in monthly expenditure.

By the end of Jestha (mid-June), total government expenditure for FY 2081/82 had reached Rs 1.28 trillion. But within just 31 days of Asar, the spending rose to Rs 1.52 trillion, marking a Rs 240 billion increase.

Over the first 11 months of the fiscal year, the government’s average daily expenditure stood at approximately Rs 3.88 billion. In Asar, however, this figure doubled to over Rs 7.76 billion per day, highlighting the year-end spending spree.

The government had allocated Rs 352.35 billion for capital expenditure at the start of the fiscal year. By the end of Asar, only 62.2% of this amount, around Rs 222.69 billion, had been spent. Strikingly, Rs 79.3 billion, or 35.61% of the total capital expenditure, was spent in Asar alone.

Operational expenses for the year totaled Rs 980.89 billion, or 86% of the initial allocation. Of this, Rs 129.31 billion was spent in Asar, accounting for 13.18% of the total operational expenditure.

Spending under financial management (such as interest payments and loan repayments) reached Rs 320.04 billion, 87.14% of the year’s target of Rs 367.28 billion.

The government had announced a budget of Rs 1.86 trillion for FY 2081/82. Of this, 81.9%, or Rs 1.52 trillion, was spent by the end of Asar.

However, revenue collection lagged behind. The government had aimed to collect Rs 1.47 trillion (excluding loans), but only managed to raise Rs 1.15 trillion, or 78.6% of the target, by Asar 30.

The data suggest that government spending continues to concentrate heavily at the end of the fiscal year, often compromising quality and transparency, especially in procurement and capital project execution. Experts argue this trend reflects systemic issues in planning, implementation, and accountability.