Capital spending in most ministries remains below 30 percent as fiscal year enters final stretch
Summary
With only a month and a half remaining in fiscal year 2025-26, most Nepalese ministries have spent less than 30 percent of their capital budgets, reflecting delays and structural issues in development spending.
Key Points
- As of late fiscal year 2025-26, capital expenditure stands at 30.72% of the total Rs407.88 billion budget.
- Most ministries have spent less than 30 percent of their allocated capital budgets, with some as low as 3.16%.
- Budget freezes, delayed fund releases, unresolved project issues, and procurement delays are key factors for low spending.
- Experts highlight the need for better project preparation, prioritization, and realistic budgeting to improve capital expenditure.
