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Nepal’s Cash Balance of General Government Stands at Rs 255 Billion in Mid-September 2025
As per NRB’s mid-September 2025 report, Nepal’s general government cash balance stands at Rs 255.61 billion, with local governments holding Rs 116.55 billion. While liquidity remains strong, under-execution of development budgets persists. The federal deficit of Rs 23.96 billion was partly offset by provincial and local surpluses totaling Rs 57 billion, highlighting the need for improved fiscal coordination and spending efficiency.
Sandeep Chaudhary
1 min read
Nepal’s cash balance of the general government reached Rs 255.61 billion as of mid-September 2025, according to the latest Nepal Rastra Bank (NRB) report on Government Budgetary Operations. This figure includes the combined fiscal balances of the federal, provincial, and local governments, indicating a healthy level of liquidity within the public sector despite a widening federal budget deficit.
The report shows that the general government’s cash balance increased from Rs 264.21 billion in mid-July 2025 to Rs 255.61 billion two months later — a marginal decline due to rising federal expenditure. The breakdown reveals that local governments alone hold Rs 116.55 billion, accounting for nearly half of the total balance. This accumulation reflects slow budget execution and delayed capital spending at the subnational level.
Meanwhile, the current balance of the general government stood at Rs 124.88 billion, while the federal government recorded a deficit of Rs 23.96 billion during the same period. In contrast, provincial governments posted a surplus of Rs 21.03 billion, and local governments improved their balances by Rs 36.49 billion, helping offset the federal shortfall.
Economists interpret the large cash holdings as a double-edged indicator — while it demonstrates fiscal stability and liquidity, it also signals inefficiency in expenditure execution, particularly in infrastructure and development projects. The recurring underutilization of budget allocations at the federal and subnational levels has become a structural issue in Nepal’s public finance system.
Experts recommend that the government accelerate capital spending, strengthen coordination across tiers, and improve financial disbursement mechanisms to ensure that cash surpluses translate into tangible economic outcomes. With sufficient liquidity in hand, timely implementation of development projects could help boost aggregate demand and sustain Nepal’s post-pandemic economic recovery.
Written by
Sandeep Chaudhary