KATHMANDU: Finance Minister Bishnu Prasad Paudel has expressed concern over the government’s declining budget expenditure, attributing it to inefficiencies in leadership and implementation.
Despite being part of a coalition between the Nepali Congress and the UML, Paudel is grappling with sluggish capital expenditure and revenue collection.
In the first nine months of the fiscal year, government spending has remained at just 47.32% of the allocated budget, while total revenue collection stands at 51.64%, according to the Office of the Comptroller and Auditor General.
As of March 23, only 24.88% of the total allocated budget has been utilized, raising concerns about the government’s ability to meet financial targets.
Even after a mid-term budget reduction of Rs 167 billion, it appears unlikely that the revised budget will be fully spent by the end of the fiscal year. In response, Minister Paudel has urged line ministries to accelerate capital expenditure. Addressing ministry secretaries, he emphasized the need for efficiency in budget allocation and implementation.
“The Ministry of Finance has been facilitating financial management from the start of the fiscal year. The responsibility to achieve results and execute projects lies with the respective ministries,” Paudel said.
Finance Secretary Ghanashyam Upadhyay called on ministries to plan next year’s budget based on actual spending capacity, while Revenue Secretary Dinesh Kumar Ghimire stressed the need for a shift in spending habits.
The Ministry of Finance has also instructed ministries to surrender unspent budget allocations if they are unable to utilize them effectively.
During the discussions, ministry secretaries assured that programs are progressing through inter-ministerial coordination, fund transfers, and streamlined payment processes.
They expressed optimism that capital expenditure would surpass last year’s figures by the fiscal year’s end.
Comment