The all powerful government in the history of Nepal has failed to expedite the development activities as half of the development budget is yet unspent even as the current fiscal year draws closer.
The incompetent and highly politicised bureaucracy and ‘communist’ government – despite the two-third majority – has been able to spend only 56.35 per cent to Rs 179.7 billion – out of the Rs 313.99 billion allocated for fiscal year 2018-19 – by today July 9, according to the Financial Comptroller General Office (FCGO).
The Finance Ministry has revised the capital expenditures downwards to Rs 265.20 billion through the mid-term budgetary review for the current fiscal year 2018-19. Due to government’s failure to enhance its spending capacity, it is still to spend over Rs 85 billion within next one week to meet even the downward revised development expenditure target. “
Last fiscal year 2017-18, capital expenditure stood at 79.74 per cent, which was the highest since 2012-13 when the spending has touched 82.56 per cent.
The FCGO data also reveals that the government has spent a total of – including capital expenditure, financing and recurrent – 72.15 per cent of the budget of Rs 1.31 trillion. The government has spent Rs 677.07 billion recurrent expenditure – out of the total allocated Rs 845.45 billion – whereas it has spent Rs 92.13 billion on financing – out of the total Rs 155.72 billion – till today.
Lack of proper project planning, weak policy execution capacity of the bureaucracy and weak project execution capacity of contractors have been, though, blamed for the lack of spending capacity of the comparatively stronger government, the government is still hopeful that the budget spending could reach upto 80 per cent in a week due to last minute payments. As a result, the last hour ‘irresponsible’ spending trend will also continue this year making the government hopeful of spending around 80 per cent by July 16, the last date of the current fiscal year.
Along with the abnormally low capital budget spending, the low revenue mobilisation exposes the government inefficiency. As of today, the government has been able to mobilise only Rs 672 billion against its target of Rs 831 billion, though it claimed to meet the target in a week.
The incompetent and highly politicised bureaucracy and ‘communist’ government – despite the two-third majority – has been able to spend only 56.35 per cent to Rs 179.7 billion – out of the Rs 313.99 billion allocated for fiscal year 2018-19 – by today July 9, according to the Financial Comptroller General Office (FCGO).
The Finance Ministry has revised the capital expenditures downwards to Rs 265.20 billion through the mid-term budgetary review for the current fiscal year 2018-19. Due to government’s failure to enhance its spending capacity, it is still to spend over Rs 85 billion within next one week to meet even the downward revised development expenditure target. “
Last fiscal year 2017-18, capital expenditure stood at 79.74 per cent, which was the highest since 2012-13 when the spending has touched 82.56 per cent.
The FCGO data also reveals that the government has spent a total of – including capital expenditure, financing and recurrent – 72.15 per cent of the budget of Rs 1.31 trillion. The government has spent Rs 677.07 billion recurrent expenditure – out of the total allocated Rs 845.45 billion – whereas it has spent Rs 92.13 billion on financing – out of the total Rs 155.72 billion – till today.
Lack of proper project planning, weak policy execution capacity of the bureaucracy and weak project execution capacity of contractors have been, though, blamed for the lack of spending capacity of the comparatively stronger government, the government is still hopeful that the budget spending could reach upto 80 per cent in a week due to last minute payments. As a result, the last hour ‘irresponsible’ spending trend will also continue this year making the government hopeful of spending around 80 per cent by July 16, the last date of the current fiscal year.
Along with the abnormally low capital budget spending, the low revenue mobilisation exposes the government inefficiency. As of today, the government has been able to mobilise only Rs 672 billion against its target of Rs 831 billion, though it claimed to meet the target in a week.
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