Provinces struggle to spend development budgets as billions remain idle
Summary
Nepal’s seven provincial governments spent an average of 61.33 percent of their capital budgets last fiscal year, with Madhesh the weakest performer and Koshi the strongest. Economists say weak project preparation, procurement delays and staffing shortages continue to keep billions in development funds idle.
Key Points
- Nepal’s seven provinces spent only 61.33 percent of their capital budgets last fiscal year, while the federal government spent 46.79 percent of its capital budget.
- Koshi recorded the highest provincial capital spending at 72.21 percent, while Madhesh had the lowest at 54.12 percent.
- Economists said weak project preparation, poor selection, procurement hurdles and staff shortages are the main reasons for low execution.
- Provincial officials also blamed the Gen Z protests, elections and political uncertainty for delaying development work.
