Capital Spending Lags as Development Budget Utilisation Remains Below 11%
Summary
Capital expenditure utilization remains below 11% in the first half of the fiscal year, hindered by protests, contract issues, and project execution challenges.
Key Points
- Capital expenditure utilization stands at just 10.69% with Rs 43.6 billion spent out of Rs 400 billion allocated by January 10.
- This performance is lower than the previous fiscal year's 15.21% utilization in the same period.
- Disruptions from recent Gen Z protests and contract terminations have slowed capital spending.
- Authorities anticipate improved spending momentum as implementation hurdles are resolved, though poor project selection also delays progress.
