Government’s Development Spending Slows, Budget Deficit Reaches NPR 161 Billion

Kathmandu – As of the first eight months of the fiscal year 2082/83, the government has spent less than half of its allocated budget. Out of NPR 1,964 billion, only NPR 926 billion has been spent by the end of Falgun, representing just 47.18 percent. While recurrent expenditure has utilized 54.37 percent, capital expenditure has lagged at only 19.24 percent.The slow pace of capital spending has hampered long-term projects such as roads, bridges, airports, schools, and hospitals. For the third consecutive year, low development spending has raised questions over administrative delays, project selection, contract management, and policy implementation.Revenue collection has shown some improvement, reaching NPR 747 billion in eight months. However, the budget deficit has exceeded NPR 161 billion. Consequently, the government revised the budget downward by NPR 275 billion, bringing it to NPR 1,688.32 billion.Under the revised budget, recurrent expenditure is expected to reach 95.34 percent, capital spending 59.65 percent, and financial management 85.02 percent. The government aims for 6 percent economic growth and to keep inflation at 5.5 percent this fiscal year.Experts note that slow development spending and rising budget deficits could negatively impact long-term economic growth. Although the government promises accelerated spending in the second half of the year, past experience casts doubt on these assurances.