Only 15.62% of Capital Budget Spent in Six Months

The government has spent only 15.62% of the capital budget allocated for the current fiscal year, raising concerns about slow implementation and systemic inefficiencies. Out of a total capital budget of NPR 4.78 trillion, only NPR 63.72 billion had been utilized by Falgun 1, with several ministries failing to spend even 10% of their allocations.

Ministries Lagging Behind: Ten ministries, including the Ministry of Federal Affairs and General Administration, and the Ministry of Urban Development, have spent less than 10% of their capital budget. The Federal Affairs Ministry, for example, was allocated NPR 4.22 billion but has spent only NPR 8.9 million, equivalent to just 2.11% of its budget. Similarly, the Urban Development Ministry has spent only 5.73% of its NPR 8.88 billion allocation.

Reasons for Low Spending: Officials point to systemic issues, political instability, and budget hold-ups as the main reasons for slow expenditure. Projects could not advance due to delayed releases of funds, procedural bottlenecks, and coordination challenges among implementing agencies. Some funds were also blocked for election-related priorities, further slowing progress on ongoing programs.

Impact and Adjustments: Due to slow spending, the government has reduced the overall budget. The initially allocated total budget of NPR 19.64 trillion has been revised down to NPR 16.88 trillion. Ministries have been gradually releasing blocked funds, but progress remains slow, with large portions of the budget still unused. Officials in the Ministry of Physical Infrastructure and Transport noted that if funds could be transferred between projects, spending could have reached 25%, but restrictions limited their ability to utilize the allocations fully.

Looking Ahead: Experts say the low capital expenditure highlights a lack of political will, administrative delays, and weak planning. Until systemic reforms are introduced and coordination between ministries improves, Nepal’s development programs may continue to face delays. Authorities hope that once blocked funds are released and projects resume, capital spending will gradually increase, though overall efficiency remains a major concern.