Nepal's Mid-Year Budget Review Reveals Dismal Capital Spending Amid High Administrative Costs
Summary
Nepal's mid-year budget review shows only 12.12% of the development budget has been spent amid high administrative expenses and damage to government buildings, stalling development.
Key Points
- Nepal spent only 12.12% of its development budget by mid-year, indicating stagnant capital expenditure.
- Government's overall budget utilization is 35.14%, with a large portion spent on current expenses and debt.
- Damage to over 2,100 government buildings during the Bhadra incident caused delays in development projects.
- Recurring issues like unprepared projects, poor coordination, frequent staff transfers, and foreign aid delays continue to hinder progress.
