Nepal's Sub-national Governments Show Weak Spending Capacity, Economic Report Reveals
Summary
Nepal's Ministry of Finance report reveals that provincial and local governments have weak spending capacity, utilizing only about 70-76% of their allocated budgets despite comprising one-third of consolidated expenditure.
Key Points
- Provinces and local levels account for about one-third of Nepal's total consolidated expenditure but do not fully utilize their allocated budgets.
- Federal government holds 65.6% of expenditure share while provinces and local levels have 9.8% and 24.6%, respectively.
- Provinces and local levels contribute only 7.9% of total revenue, showing heavy reliance on federal transfers.
- Budget utilization is low: provinces spend 71.3% and local levels 76.4% of their allocated budgets in fiscal year 2081/82.
