DILIP PAUDEL

According to the Financial Comptroller General Office, the government had spent only 34.87 percent of the capital budget as of June 27. Out of the Rs 407.88 billion allocated for capital expenditure this fiscal year, only Rs 142.23 billion has been spent.

In its latest report released this week from Paris, FATF noted shortcomings in Nepal's anti-money laundering system, capacity to investigate and prosecute financial crimes, efforts to curb illegal hundi transactions, and risk-based supervision mechanisms.

The government has unveiled a new infrastructure development strategy, preparing to launch projects worth nearly Rs 1.15 trillion over the next three years in an effort to accelerate construction and overcome long-standing delays in project implementation.

Despite commanding nearly two-thirds of parliamentary support, the government has unveiled the FY 2026/27 budget, which cuts capital expenditure and fails to address Nepal’s weak spending capacity.

Consumers, dealers and industries bear the burden as full cylinders remain unavailable

The government’s move is being viewed as an important step toward building an innovation-driven economy. 

Despite heavy investment and new expansion targets, over half of Nepal’s arable land still lacks irrigation, keeping agriculture heavily dependent on monsoon rainfall.

Budget fails to address crisis

The assessment comes in the State of the Economy Report unveiled on Monday by Finance Minister Swarnim Wagle, who outlined a range of structural and policy-driven challenges weighing on the economy.

The anti-graft body lodged the case at the Special Court on Wednesday, concluding that irregularities occurred in the under-construction cold storage project in Rupandehi.