KATHMANDU, Jan 11: Less than 11 percent of the development budget has been spent in the first half of the current Fiscal Year (FY), highlighting slow progress in capital expenditure.
According to the Ministry of Finance, out of over Rs 400 billion allocated for capital projects, only Rs 43.6 billion had been utilized by January 10— equivalent to 10.69 percent of the designated budget.
By comparison, the same period last year saw Rs 53.58 billion spent, representing 15.21 percent of the allocated budget, indicating a more disappointing pace of development expenditure this year.
Ministry of Finance spends only 10 percent of its budget in six...
Officials attribute the delay partly to disruptions caused by the recent ‘Gen Z’ protests and the termination of contracts under underperforming agreements, which affected project implementation.
Ministry Spokesperson Tank Prasad Pandey noted that while recurrent expenditures were largely on track, capital spending faced setbacks. “The Gen Z movement disrupted administrative mechanisms for about one and a half months, which affected effective budget execution. The ministry has been facilitating implementing agencies, and we expect significant improvements in development spending in the coming months,” Pandey said.
He added that delays by some contractors, along with legal adjustments regarding underperforming contracts, are expected to positively influence future project completion.
Construction sector representatives also pointed to challenges in development projects. Ravi Singh, president of the Construction Entrepreneurs Federation, said some projects selected hastily in the past have caused difficulties for contractors in execution.
