Government Spends NPR 690 Billion in Six Months, Capital Expenditure Remains Weak

The Government of Nepal has spent NPR 690.21 billion in the first six months of the current fiscal year 2082/83. According to the Mid-Term Budget Review released by the Ministry of Finance, this amount was spent out of the total allocated budget of NPR 1.964 trillion by mid-January.

Out of the total expenditure, 41.25 percent was spent on recurrent expenses, 12.12 percent on capital expenditure, and 40.15 percent on financial management. Although overall spending increased by 3.39 percent compared to last year, capital expenditure remained low due to lack of project preparation, land acquisition issues, forest clearance complications, and damages caused by recent protests.

The Ministry has suspended NPR 119.53 billion allocated to unproductive and poorly prepared projects. Out of this, NPR 42.28 billion has been released for justified and prioritized projects, according to Finance Minister Rameshwar Khanal.

For revenue mobilization, the government has set a target of NPR 1.48 trillion for the current fiscal year. By mid-January, it had collected NPR 505.40 billion against a target of NPR 711 billion. Revenue collection during the review period increased by 2.47 percent compared to the same period last year.

In terms of domestic borrowing, the annual target stands at NPR 362 billion, out of which NPR 177.66 billion has been raised so far. Meanwhile, NPR 187.12 billion has already been spent on principal and interest payments of public debt.

During the review period, foreign development assistance commitments worth NPR 65.39 billion were received, with 29.44 percent in grants and 70.56 percent in loans. The Ministry has emphasized prioritization, fiscal discipline, and reduction of unproductive spending, including restrictions on allowances and non-essential expenses, while focusing on reconstruction and mandatory obligations.