KATHMANDU, Dec 16: Development expenditure of the government is weak in the first five months of the current Fiscal Year (FY) 2025/26.
The government spent only eight per cent capital expenditure till December 15. According to the statistics of the Financial Comptroller General Office (FCGO), capital expenditure was Rs 33.87 billion till December 15.
A total of Rs 407.88 billion was allocated under the capital expenditure heading for the current FY.
Of the Rs 1.18 trillion allocated for current expenditure this FY, only 33.7 percent or Rs 398 billion, has been spent so far.
Karnali Province spends only 31pc of budget in 10 months
Similarly, the government had allocated Rs 375 billion under the financial management heading, of which Rs 132 billion (35.32 percent) has been spent to date.
According to the Financial Comptroller General Office (FCGO), 28.74 percent of the government’s total annual expenditure allocation had been spent by December 15. Of the Rs 1.964 trillion budget allocated for the current FY, Rs 564 billion has been spent so far.
Meanwhile, revenue collection has remained weak. Against the annual revenue target of Rs 1.533 trillion, the government collected only Rs 414 billion (27 percent) in the first five months of the FY.
The government had targeted revenue collection of Rs 520.44 billion during the first five months.
Likewise, only Rs 80.27 billion in tax revenue was collected between November 17 and December 15 against the target of Rs 95.20 billion.
So far, 28.83 percent of the annual tax revenue target—amounting to Rs 382.23 billion—has been collected. In the non-tax revenue category, 15.59 percent or Rs 24.7 billion has been collected.
The government had set a target of receiving Rs 53.45 billion in foreign grants this fiscal year, but has so far received only 9.58 percent, equivalent to Rs 5.12 billion.
Based on current revenue and expenditure figures, the budget deficit has widened to around Rs 150 billion, with government spending exceeding revenue by approximately Rs 149.56 billion.
