KATHMANDU: The government’s development spending has remained weak in the first five months of the current fiscal year 2025/26, according to official data from the Office of the Auditor General.
Up to the end of Mangsir, only 8 percent of the capital budget was spent. Out of the total allocation of Rs 407 billion for capital expenditure this fiscal year, the government has spent just Rs 33.8743 billion so far.
Similarly, for recurrent expenditure, of the annual allocation of Rs 1.18 trillion, 33.7 percent or Rs 398 billion has been utilized. Under the financial management heading, Rs 375 billion was allocated, of which Rs 132.5397 billion (35.32 percent) has been spent.
Overall, the government’s total expenditure up to Mangsir accounts for 28.74 percent of the annual budget. Out of the total budget allocation of Rs 1.96 trillion for the year, Rs 564 billion has been spent so far.
Revenue collection has also been below expectations. The government had targeted Rs 1.533 trillion in revenue for the fiscal year, but only Rs 414.9 billion (27 percent) was collected in the first five months. The target for Mangsir end alone was Rs 520 billion, but actual collection reached Rs 415 billion (78.74 percent of the target).
Of the total revenue collected so far, Rs 382.23 billion (28.83 percent of the annual target) comes from tax revenue, while non-tax revenue accounts for Rs 24.07 billion (15.59 percent).
The government had also aimed to secure Rs 53.44 billion in foreign aid this fiscal year, but only Rs 5.121 billion (9.58 percent) has been received to date.
Overall, the fiscal deficit has widened to approximately Rs 149.55 billion, with government spending exceeding income by this amount in the first five months of the fiscal year.
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