Nepal Government Expenditure Trend Analysis: A Fiscal Review from FY 2061/62 to FY 2083/84 Overview
Summary
Nepal's government expenditure has grown nearly 19-fold over two decades, with significant challenges in capital expenditure efficiency and fiscal discipline despite strong current spending execution.
Key Points
- Nepal's total government expenditure increased nearly 19 times from FY 2061/62 to FY 2083/84, reflecting rapid fiscal expansion.
- Current expenditure dominates the budget and is efficiently executed, while capital expenditure suffers from poor implementation rates averaging 76%.
- Financial transfers have risen sharply post-federalism, indicating decentralization but without corresponding improvement in capital project execution.
- Rising financial expenditure highlights growing debt servicing burdens, threatening fiscal sustainability if unchecked.
