The idea of national pride projects was introduced with the hope that the projects would enhance public services and stimulate economic growth. This also aimed to expedite the projects at the desired pace, with additional priority and commitment in terms of budget and other resources. However, the progress made in expediting the national pride projects appears not to have been good. Out of the 27 national pride projects, a budget of Rs 66.75 billion was allocated for 19 projects in the current fiscal year. By the end of the first half of the fiscal year (mid-January), only Rs 17.15 billion had been spent, accounting for 25.70 percent of the allocated budget. This highlights the inefficiency of the government mechanisms involved in expediting the projects to which the government has accorded so much priority. It is a matter of shame to note that these projects have failed to gain momentum in terms of their implementation even with adequate government funding and resources. The government must look into it, find the causes behind it, and take appropriate measures to address them without any further delay.
Starting from the Fiscal Year 2011/12, the government initially designated a total of 17 projects as national pride projects. Over time, the government added both ongoing and new projects to the list of national pride projects based on necessity and relevance, expanding the total number to 27. Among these, some have already been completed, while others have yet to begin. As of FY 2024/25, 19 projects designated as national pride projects are under implementation. For FY 2023/24, a net budget of Rs 60.39 billion was allocated for national pride projects, out of which Rs 54.24 billion was spent. According to the Ministry of Finance, the financial progress stands at 89.82 percent, while the physical progress is recorded at 57.50 percent. The progress made in expediting the national pride projects in the first six months of the current FY does not show promising signs either. While the progress made in terms of spending on the national pride projects is not satisfactory, the overall capital expenditure of the government is equally dismal. The government has failed to make any significant progress in meeting its capital expenditure target in the first half of the current FY. The data released by the Financial Comptroller General Office (FCGO) shows that the government spent only Rs 56.93 billion on development projects from mid-July 2024 to mid-January 2025, although it allocated a total of Rs 352.35 billion in capital expenditure for this FY. This constitutes just 16.16 percent of the total target.
Shame! Shame! Shame! Shame on Nepal
The dismal capital expenditure has been a perennial problem almost every year in Nepal. In FY 2023/24, the government spent around 61 percent of the allocated amount of Rs 302 billion for the entire year. Of the amount spent, Rs 50 billion was exhausted just in the last month of the review year. The fact that the government was able to spend less than 17 percent of the total capital expenditure target in the first six months of the current FY shows that this year is set to be no different from previous years in terms of meeting capital expenditure targets. Needless to say, the low capital expenditure is having a profound impact on the economy. Construction and infrastructure projects play a key role in boosting the economy and creating employment. However, in the current situation, the immobility of the construction sector, delays in payment to contractors, and procedural complications have created obstacles in these projects. Public capital expenditure, crucial for economic growth, is consistently underutilized in Nepal. The failure to spend capital expenditure in a timely and appropriate manner is a serious issue that warrants immediate attention of our politicians and policymakers. It is high time our politicians and policymakers prioritized increasing and effectively utilizing capital expenditure, including funds allocated for the national pride projects, by addressing bureaucratic hurdles, improving financial discipline, and resolving other bottlenecks that have hindered the effective implementation of development projects for sustainable economic growth.
