Development spending stuck at 6.83% as budget execution lags
Summary
Nepal’s capital expenditure has reached only 6.83% of the annual allocation three and a half months into the fiscal year, even as overall spending stands at 19.65%. Delays in project preparation, procurement, land acquisition and disaster disruptions are slowing development spending and raising fresh doubts about the government’s reform drive.
Key Points
- Capital expenditure has reached just Rs 29.46 billion, or 6.83% of the Rs 431.10 billion allocated for development projects.
- Overall government spending stands at Rs 417.42 billion, or 19.65% of the total Rs 2.124 trillion budget.
- The government says floods and landslides in Rasuwa, Kaligandaki and Budhigandaki areas disrupted early budget implementation.
- Longstanding problems such as weak project preparation, procurement delays, land disputes and contractor underperformance continue to hamper spending.
