Nepal's Budgetary Performance Shows Imbalance and Challenges Over Three Fiscal Years
Summary
Nepal's budget implementation over three fiscal years shows an imbalance with sluggish capital expenditure and increasing budget deficits, pressuring the country's economy.
Key Points
- Nepal's government struggled to meet revenue collection targets over the past three fiscal years, achieving below 80 percent progress each year.
- Total government expenditure was consistently below allocated targets, with a progress rate ranging between 77.51 and 80.93 percent.
- Capital expenditure, crucial for infrastructure development, declined from 57.15 percent in 2080/081 to 44.51 percent in 2082/083 fiscal year by Asar 26.
- The government faced increasing budget deficits each year due to weak revenue collection and high current expenditures, highlighting the need for policy reforms.
