KATHMANDU, Jan 16: The government spent only 13.44 percent on development projects as of the first six month of the current fiscal year, even at a slower pace compared to the same period last year.
According to the Financial Comptroller General Office (FCGO), the government spent Rs 50.80 billion during mid-July and mid-January out of Rs 378.09 billion allocated for the Fiscal Year 2021/22. The capital expenditure was even slower even as the government promised to take the economy in recovery after a decline in infection cases following the second wave of the COVID-19.
Last year, the government spent 14.4 percent in the first six months’ period out of the annual budget of Rs 352.91 billion allocated under the heading despite the country facing longer lockdown and more threat of coronavirus pandemic as compared to the review period this year.
At the time when the government is in a day-dream to spend 10 percent of the development budget every month, the ratio of spending is only about one-seventh of the total amount in the first half of the financial year. According to the experts, it has aided in a liquidity crunch in the country’s banking system while it will also hit the target set by the government to achieve a growth rate of seven percent for this year.
Despite its commitment, the government falls short of making notable expenses in development projects almost every year. In 2020/21, the government utilized only Rs 227.73 billion out of Rs 352.91 billion, a 64.69 percent, allocated under the heading. Of the total amount spent, Rs 86.79 billion was spent just during mid-June and mid-July, the last one month of the fiscal year.