Nepal's Capital Budget Expenditure Significantly Lower Than India's
Summary
Nepal's capital budget expenditure in fiscal year 2080/81 was 63.20% of the allocated budget, significantly lower than India's 95.54%. Low implementation hampers development and infrastructure progress in Nepal.
Key Points
- Nepal spent 63.20% of its allocated capital budget of 352.35 billion rupees in fiscal year 2080/81, compared to India's 95.54% implementation rate.
- Nepal's average capital expenditure implementation over 35 years has weakened, dropping to 68.96% in the last 10 years after the constitution promulgation.
- Key reasons for low expenditure include ambitious budgets with unprepared projects, difficulties in project feasibility, land acquisition, and cash flow management.
- Delays and inefficiencies in capital expenditure negatively impact employment, market liquidity, infrastructure development, and overall economic growth in Nepal.
