KATHMANDU, April 15: The government’s capital expenditure has reached just 23.58 percent of its annual target in the first nine months of the current Fiscal Year (FY), reflecting a continued slowdown in development spending.
According to records from the Financial Comptroller General Office (FCGO), the government spent Rs 96.19 billion on capital projects between mid-July 2025 and April 13, 2026—the final day of Nepali Year 2082. This is against an annual allocation of Rs 407.88 billion for development projects.
The latest figures also show a decline compared to the same period last FY. Capital spending in the first nine months of FY 2024/25 stood at Rs 102.90 billion, or 29.2 percent of the annual target—meaning this year’s spending is lower by Rs 6.71 billion.
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Officials at the Ministry of Finance attribute the sluggish pace to long-standing structural bottlenecks, including inadequate project preparation, delays in land acquisition, difficulties in securing forest clearances, and slow payments to contractors. A ministry official also pointed to political transition and the March 5 elections as additional disruptions affecting execution.
Spending picked up slightly after the change in government, with Rs 12.35 billion disbursed for development projects in the two weeks following the formation of the Balen-led administration on March 27. However, officials acknowledge a steep challenge ahead, with Rs 147.11 billion still to be spent in the remaining three months of the fiscal year.
Through the mid-term budget review, the government has already revised capital expenditure downward to Rs 243.30 billion—59.65 percent of the original estimate for FY 2025/26—reflecting persistent implementation constraints.
As in previous years, most capital spending is expected to be concentrated in the final quarter. However, officials and observers caution that such back-loaded expenditure patterns often undermine fiscal discipline and can compromise the quality of infrastructure projects.
On the revenue side, the government has collected 59.88 percent of its annual target in the review period. Out of the Rs 1.48 trillion target, total revenue collection stood at Rs 886.28 billion. Tax revenue accounted for Rs 798.77 billion, or 60.26 percent of the target.
Meanwhile, total government expenditure reached Rs 1.059 trillion in nine months, representing 59.16 percent of the annual allocation. This included Rs 747.52 billion in recurrent spending for administrative operations and Rs 216.23 billion for debt servicing.
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