KATHMANDU, Oct 18: The government’s capital expenditure stood at a mere 4.7 percent as of the first quarter of the current fiscal year (FY), which ended on Friday.
The records maintained by the Financial Comptroller General Office (FCGO) show that the government spent Rs 19.18 billion in development projects during the first three months between mid-July and mid-October this year. The government has allocated a total of Rs 407.88 billion under this heading for FY 2025/26.
Every year, the government’s expenditure on development projects remains pathetic in the starting phase of the FY. However, the spending grows dramatically with the approaching end of the respective FY, due to rampant expenses to exhaust the allocated funds.
Expediting Capital Expenditure
Due to bureaucratic red tape and the existing work procedures of the government, the country’s capital expenditure barely crosses 65 percent almost every year. According to the FCGO, the capital expenditure in the review period this year was less by 3.66 percentage points compared to 8.36 percent in the same period of the last FY.
As per an official of the Ministry of Finance (MoF), the capital expenditure remained sluggish in the current FY due to the impacts of the Gen Z movement.
“With the political volatility and damages caused in a number of government offices, the capital expenditure might not reach the same proportion as previous years. However, if the reconstruction is expedited on time, the capital expenditure could grow in the coming months,” the source said.
In the first quarter of FY 2025/26, the government’s budget expenditure stood at Rs 253.18 billion. The amount was 16.51 percent of the allocated budget of Rs 1.964 trillion.
Meanwhile, the revenue collection in the first quarter of the current FY stood at Rs 249.05 billion out of the targeted amount of Rs 1.480 trillion. It makes up 16.83 percent of the annual target.
The revenue collection amount in the first quarter this year was almost equivalent to the same period last year. During mid-July and mid-October of FY 2024/25, the government collected revenue of Rs 250.46 billion, which was 17.65 percent of the annual target of Rs 1.419 trillion.
Likewise, the government received grants worth over Rs 2 billion so far this year. The amount is 3.76 percent of the target of Rs 53.44 billion.
