Nepal Government Spends Only Rs 1.13 Arba on Development in 10 Months, Just 27.91% of Annual Capital Budget Used

Development Projects Still Moving Slowly as Government Uses Less Than 28% of Capital Budget Despite Flexible Spending Rules

Kalyan Bhusal

· 1 min read

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Construction of road and bridge
Construction of road and bridge

Nepal’s development spending remains critically slow even after 10 months of the current fiscal year 2082/83. According to the Office of the Financial Comptroller General, the government has spent only Rs 1.13 Arba under capital expenditures, which is just 27.91% of the annual target. Despite the Finance Ministry making budget transfers and spending rules more flexible this year, infrastructure and development projects still failed to gain strong momentum.

Meanwhile, the government’s total expenditure has reached Rs 11.73 Arba, while total income stands at only Rs 10.12 Arba, creating a deficit of around Rs 1.5 Arba. Revenue collection has also remained weak, with only 66.79% of the annual target achieved so far. Most government spending is currently going toward regular expenses and loan repayments instead of development work, raising fresh concerns over budget management and economic performance.

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Published May 15 in Nepal

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