The amount spent by the government in the review period is only 56 percent of the total budget of Rs 72.61 billion allocated for the purpose.[break]
However, the government has said its capital expenditure will beat the mid-term review target of Rs 65 billion by the end of fiscal year which ends in mid-July. This means capital spending will rise steepy in the final month of the fiscal year as in the past.
“Spending in the final month of the financial year usually goes up as payments for the work conducted in the previous months are released during this time,” a Ministry of Finance statement quoted Finance Secretary Krishna Hari Banskota as saying.
“Likewise, projects of national pride and priority projects under multi-year contracts that are running out of budget are given additional funds during the final month of the financial year, which pushes up spending.”
This trend was seen in previous fiscal years as well. In the last fiscal year, Rs 65.43 billion was used in the period between mid-June and mid-July, while in the financial year before that Rs 62.17 billion was spent in the final month.
This financial year, the government had earmarked a budget of Rs 384.9 billion, of which Rs 275.56 billion, or 71.5 percent, was consumed till the first 11 months. Of the total allocated budget, Rs 266.61 billion was allotted for recurrent expenditure and Rs 45.68 billion was earmarked for financing.
“The current trend shows all the funds under the head of recurrent expenditure and financing will be fully utilized,” the finance ministry statement said.
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