Nepal’s Development Budget Crosses Rs 100 Billion, But Utilization Remains Below 30%

Kathmandu: Nepal’s development budget has exceeded Rs 100 billion as of the ninth month (Shrawan–Chaitra) of the current fiscal year 2081/82, yet actual expenditure remains significantly low compared to the target set by the government.

According to the Office of the Financial Comptroller General, Rs 102.90 billion has been spent under the development budget by the end of Chaitra. This accounts for only 29.2% of the total capital expenditure target of Rs 352.35 billion for the year—raising serious concerns about the government’s ability to execute its development priorities.

With only three months remaining in the fiscal year, over 70% of the development budget still remains unspent. Historically, Nepal has struggled to utilize more than 60% of its capital expenditure allocations annually. The Ministry of Finance has already instructed line ministries to surrender unutilized capital budgets if they are unable to execute them.

In contrast, total government expenditure has reached nearly Rs 1 trillion. Out of the total budgeted Rs 1.86 trillion for FY 2081/82, overall expenditure stands at Rs 998.50 billion—53.67% of the target.

Current expenditure accounts for the bulk of this amount, reaching Rs 678.06 billion—59.45% of the allocated Rs 1.14 trillion. Similarly, financial management-related expenses have hit 59.23% of their budgeted amount.

However, the government is also falling short in revenue collection. Against a target of over Rs 1 trillion in revenue by Chaitra, only around Rs 840 billion has been collected. The annual revenue target for FY 2081/82 stands at Rs 1.419 trillion.

The persistent underperformance in both capital expenditure and revenue collection poses challenges to fiscal sustainability and the overall economic momentum of the country.