As usual, the government has not been able to spend the capital budget, despite being the historically strong and two-third majority. The government has neither been able to mobilise the revenue unlike during the uncertain fiscal years, which sometimes saw two governments in one fiscal year.
Despite the government’s repeated commitment to expedite capital expenditure, the government has been able to spend only 4.41 per cent of the capital expenditure in the first quarter of the current fiscal year 2019-20, according to the Financial Comptroller General Office (FCGO). “The government has been able to spend only Rs 18.37 billion in capital budget, out of the total Rs 408 billion capital expenditure for the current fiscal year,” the FCGO data reveals, adding that the allocation for the capital expenditure accounts for 26.6 per cent of the total budget of Rs 1,532.97 billion for the current fiscal year 2019-20. “The government has been able to spend 16.38 per cent of recurrent budget in the first quarter.”
The government spent Rs 156.73 billion – out of the Rs 957.1 billion recurrent expenditure for the current fiscal year – in the first quarter. “The aggregate spending of the budget including recurrent, capital and financing stands at 11.61 per cent,” according to the data.
The incumbent government has been vowing to boost the capital spending in the current fiscal year by introducing various measures, though the underspending of the capital budget has been a perennial problem. The government also failed to spend capital budget compared to the same period of the last fiscal year 2018-19 too. According to the FCGO, the government had spent 7.2 per cent to Rs 22.6 billion of the capital budget that stood at Rs 313.99 billion in the last fiscal year. “The government had been able to spend only 75 per cent of the total capital budget in the last fiscal year.”
The focused mainly on drafting and revising laws as required after the constitution promulgation, apart from setting up institutions in the federal set up, confusion over jurisdiction of projects, and delay in staff adjustment have been attributed to the poor capital expenditure.
But the finance minister Dr Yuba Raj Khatiwada said that the capital expenditure tends to remain weak in the first quarter as spending units draw contract and bidding plans during this period. “But the government will boost the expenditure,” he said, pleadging to meet the capital spending target.
The large chunk of the expenditures will be made in the second half of the fiscal year, raising the question about the quality of the spending.
Likewise, the government has also failed to mobilise revenue. “The government has been able to mobilise 16.43 per cent to Rs 182 billion revenue in the first quarter of the current fiscal year,” the FCGO data revealed, adding that the government has targeted to mobilise Rs 1.1 trillion revenue for the current fiscal year.
The government has suffered a revenue shortfall of Rs 70 billion – some 28 per cent below the target for the first quarter of the current fiscal year due to slump in imports and the government’s failure to raise adequate revenue through domestic economic activities.
According to the Financial Comptroller General Office (FCGO), the government has mobilised Rs 182.7 billion in the first quarter of the ecurrent fiscal year. The Finance Ministry had targeted to mobilise Rs 252 billion in the first quarter.
Department of Customs and the Inland Revenue Department – both failed significantly in revenue mobilisation. The customs office was given a target of Rs 132 billion but the government has been able to mobilise only Rs 93 billion, whereas the Inland Revenue Department has been able to mobilse only Rs 80.60 billion, against its target of Rs 92.70 billion.
The government has set an ambitious annual revenue growth target of 35 per cent for the current fiscal year.
The fall in imports that declined by 1.2 per cent caused by a slump in the import of fuel, gold, silver, cement clinkers, aircraft parts and polythene granules hit the revenue mobilisation, according to the Department of Customs. The FCGO data also revealed that the government faced revenue shortfall of 114.34 billion in the last fiscal year too.
Despite the government’s repeated commitment to expedite capital expenditure, the government has been able to spend only 4.41 per cent of the capital expenditure in the first quarter of the current fiscal year 2019-20, according to the Financial Comptroller General Office (FCGO). “The government has been able to spend only Rs 18.37 billion in capital budget, out of the total Rs 408 billion capital expenditure for the current fiscal year,” the FCGO data reveals, adding that the allocation for the capital expenditure accounts for 26.6 per cent of the total budget of Rs 1,532.97 billion for the current fiscal year 2019-20. “The government has been able to spend 16.38 per cent of recurrent budget in the first quarter.”
The government spent Rs 156.73 billion – out of the Rs 957.1 billion recurrent expenditure for the current fiscal year – in the first quarter. “The aggregate spending of the budget including recurrent, capital and financing stands at 11.61 per cent,” according to the data.
The incumbent government has been vowing to boost the capital spending in the current fiscal year by introducing various measures, though the underspending of the capital budget has been a perennial problem. The government also failed to spend capital budget compared to the same period of the last fiscal year 2018-19 too. According to the FCGO, the government had spent 7.2 per cent to Rs 22.6 billion of the capital budget that stood at Rs 313.99 billion in the last fiscal year. “The government had been able to spend only 75 per cent of the total capital budget in the last fiscal year.”
The focused mainly on drafting and revising laws as required after the constitution promulgation, apart from setting up institutions in the federal set up, confusion over jurisdiction of projects, and delay in staff adjustment have been attributed to the poor capital expenditure.
But the finance minister Dr Yuba Raj Khatiwada said that the capital expenditure tends to remain weak in the first quarter as spending units draw contract and bidding plans during this period. “But the government will boost the expenditure,” he said, pleadging to meet the capital spending target.
The large chunk of the expenditures will be made in the second half of the fiscal year, raising the question about the quality of the spending.
Likewise, the government has also failed to mobilise revenue. “The government has been able to mobilise 16.43 per cent to Rs 182 billion revenue in the first quarter of the current fiscal year,” the FCGO data revealed, adding that the government has targeted to mobilise Rs 1.1 trillion revenue for the current fiscal year.
The government has suffered a revenue shortfall of Rs 70 billion – some 28 per cent below the target for the first quarter of the current fiscal year due to slump in imports and the government’s failure to raise adequate revenue through domestic economic activities.
According to the Financial Comptroller General Office (FCGO), the government has mobilised Rs 182.7 billion in the first quarter of the ecurrent fiscal year. The Finance Ministry had targeted to mobilise Rs 252 billion in the first quarter.
Department of Customs and the Inland Revenue Department – both failed significantly in revenue mobilisation. The customs office was given a target of Rs 132 billion but the government has been able to mobilise only Rs 93 billion, whereas the Inland Revenue Department has been able to mobilse only Rs 80.60 billion, against its target of Rs 92.70 billion.
The government has set an ambitious annual revenue growth target of 35 per cent for the current fiscal year.
The fall in imports that declined by 1.2 per cent caused by a slump in the import of fuel, gold, silver, cement clinkers, aircraft parts and polythene granules hit the revenue mobilisation, according to the Department of Customs. The FCGO data also revealed that the government faced revenue shortfall of 114.34 billion in the last fiscal year too.
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