The government's treasury has hit Rs 221 billion cash surplus mainly due to the failure to effectively execute the budget, rise in revenue mobilisation and carryover of huge cash balance from the previous fiscal year.
According to the central bank, the budget surplus is more than two-thirds of the funds that the government had planned to spend in various development projects for the current fiscal year 2016-17.
The government – in its budget for the current fiscal year 2016-17 – has allocated Rs 311.95 billion for capital expenditure. However, it has managed to spend only Rs 136 billion (43.88 per cent) of the allocation by yesterday.
Through the government failed to expedite capital expenditure, it has almost met its revenue target. "As of yesterday, the government has mobilised a total of Rs 551 billion in revenue compared to the target of Rs 565.9 billion," according to the Office of Comptroller general. "The mismatch of disappointingly low spending and high revenue moblisation has sent the government treasury into surplus," according to officials of Finance Ministry.
Last fiscal year, the government had transferred Rs 59.41 billion of cash balance to the current fiscal year's budget.
The expansionary budget – for the current fiscal year – had estimated to finance the budget deficit of the current fiscal year partly through the cash balance which is expected to remain at Rs 102.73 billion. "But, given that the low development expenditure and revenue mobilisation exceeding the target, the government is likely to have far higher amount of cash surplus in the current fiscal year," the Finance Ministry official added.
According to the vice chair of National Planning Commission (NPC) Min Bahadur Shrestha, the development spending was also affected due to election code of conduct. "As the local level elections were held in different phases, the code of conduct was in place for a long period," he said, adding that the government had to deploy many employees for election which affected implementation of many development projects. "Labourers and contractors as well as many people went to vote in the polls which created shortage of human resources in the project."
He, however, claimed that capital expenditure will cross 80 per cent by the end of the fiscal year.
According to the central bank, the budget surplus is more than two-thirds of the funds that the government had planned to spend in various development projects for the current fiscal year 2016-17.
The government – in its budget for the current fiscal year 2016-17 – has allocated Rs 311.95 billion for capital expenditure. However, it has managed to spend only Rs 136 billion (43.88 per cent) of the allocation by yesterday.
Through the government failed to expedite capital expenditure, it has almost met its revenue target. "As of yesterday, the government has mobilised a total of Rs 551 billion in revenue compared to the target of Rs 565.9 billion," according to the Office of Comptroller general. "The mismatch of disappointingly low spending and high revenue moblisation has sent the government treasury into surplus," according to officials of Finance Ministry.
Last fiscal year, the government had transferred Rs 59.41 billion of cash balance to the current fiscal year's budget.
The expansionary budget – for the current fiscal year – had estimated to finance the budget deficit of the current fiscal year partly through the cash balance which is expected to remain at Rs 102.73 billion. "But, given that the low development expenditure and revenue mobilisation exceeding the target, the government is likely to have far higher amount of cash surplus in the current fiscal year," the Finance Ministry official added.
According to the vice chair of National Planning Commission (NPC) Min Bahadur Shrestha, the development spending was also affected due to election code of conduct. "As the local level elections were held in different phases, the code of conduct was in place for a long period," he said, adding that the government had to deploy many employees for election which affected implementation of many development projects. "Labourers and contractors as well as many people went to vote in the polls which created shortage of human resources in the project."
He, however, claimed that capital expenditure will cross 80 per cent by the end of the fiscal year.
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