KATHMANDU, Nov 15: Prime Minister Sushila Karki expressed her dissatisfaction over the government’s slow progress in utilization of the development budget.
Speaking at the review meeting on government policy and program for the fiscal year (FY) 2025/26 and status of budget implementation organized on Friday, Prime Minister Karki directed the government to speed up the working for utilization of annual budget along with changing the working style in line of recent political change and according to the spirit of the new generation.
"We are not particularly satisfied with the facts and figures presented by the government system. Some of the milestones set periodically have not been completed. It is ironic that even the normal administrative process has not been completed and the progress according to the milestones has not been achieved within the specified period," she said.
Expediting Capital Expenditure
"In a situation where capital expenditure has not been as per the target, it seems that we need to increase the pace further in the remaining period of the fiscal year. It seems that the ministries that build physical infrastructure and have a high responsibility for capital expenditure need to change their working style," Karki added.
Almost every year, the country has been witnessing pathetic capital expenditure, which affects the cash flow in the market. In addition, it also affects the employment opportunities and aggregate demand of the economy.
Although the government most of the time makes around 60 percent under the headings with the fiscal year end, the majority of expenditure is made in the last month, resulting in poor quality infrastructure and misuse of the country’s financial resources.
In the first four months of the current FY, the government has only spent 6.01 percent of the allocated budget of Rs 407 billion under the heading. In FY 2024/25, the capital expenditure stood only Rs 222.68 billion out of the allocated amount of Rs 352.35 billion.
