Capital expenditure in the first five months of the current fiscal year is about Rs 7 billion less than the same period of the previous fiscal year.
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The government has spent Rs 33.87 billion 4.3 billion on capital expenditure in the first five months of the current fiscal year (Shrawan-Mansir). This is 8.3 percent of the annual target. Capital expenditure in the first five months of the current fiscal year is about Rs 7 billion less than the same period of the previous fiscal year.
The government had spent Rs 40.806 billion, or 11.58 percent of the annual target, on capital expenditure until Mangsir of the last fiscal year 2081/82.
In the first five months of the fiscal year 2080/81, Rs 36.6 billion, or 11.94 percent of the annual target, was spent on capital expenditure. The government's capital expenditure this year is lower than that of the previous two years. In the current fiscal year, the government had allocated Rs 407.88 billion under the capital heading.
Finance Ministry spokesperson Tanka Prasad Pandey said that capital expenditure has not increased as expected, especially due to the difficult situation after the Gen-G movement on 23 Bhadra and the protest on 24 Bhadra. 'We are also not satisfied with capital expenditure,' he said. 'The work of capital expenditure is more the responsibility of other development ministries than the Finance Ministry. The Finance Ministry will only facilitate it.' He informed that the Finance Ministry is holding regular dialogues with other ministries to increase capital expenditure.
As of last Mangsir, 33.7 percent of the annual target, or Rs 398.4 billion, has been spent on current expenditure. This is more than the current expenditure of the same period of the last fiscal year. As of 2081 Mangsir, current expenditure was Rs 363.54 billion, or 31.87 percent of the annual target.
Economists say that the current government, which came after the Gen-G movement, has also failed to increase government expenditure as expected. ‘The government has now canceled projects worth about Rs 1.25 trillion. Expenditure on unnecessary areas should have been cut. However, there are complaints that project selection has not been effective for cost reduction,’ said economist Dilliraj Khanal. ‘The budget of some projects whose work has already started after DPR has been canceled. That should not be done. The work on the remaining projects should have been expedited by scrapping unnecessary and useless projects.’ He said that capital expenditure has not increased even as the reconstruction of physical infrastructure damaged during the Gen-G movement could not begin.
Similarly, in the five months of the current fiscal year, the government has collected Rs 49.78 billion in revenue. This is 27.45 percent of the annual target. The government had set a target of collecting Rs 1.48 trillion through revenue in the current fiscal year. The revenue collection made by the government in the five months is 78.84 percent compared to the target till Mangsir, according to the Ministry of Finance. The government had set a revenue collection target of Rs 520.44 billion by Mangsir.
Last fiscal year, the government had set a revenue collection target of Rs 1.41 trillion. Rs 495.2 billion was collected till Mangsir of that year.
‘The income tax has not been achieved as per the target due to the decrease in interest rates in banks and financial institutions and the slowdown in real estate transactions,’ said Spokesperson Pandey. ‘There has been a good improvement in the income received from exports. Imports have increased by about 17.5 percent, while customs duty collection is also around the same.’
In the five months, the government has paid 132.53 billion 97 million rupees (35.32 percent of the annual target) on the principal repayment of government loans and investment in government institutions (financial arrangements). Until 081 Mangsir, the government had spent 151.76 billion 57 million rupees or 41.32 percent of the target on this head. Even in the last five months of this year, the government has not been able to receive foreign grants.
Looking at the income and expenditure of the government in the first five months of this year, the government is in a deficit of about 149.55 billion rupees. During that period, the government earned 414.90 billion 27 million rupees and spent 564.46 billion 12 million rupees. Until Mangsir of the last fiscal year, the government was in a deficit of about 151.80 billion 67 million rupees. During that period, the government earned 430.66 billion rupees and spent 556.11 billion 33 million rupees.
The government has allocated a budget of 1964.11 billion for the current fiscal year. 1180.98 billion has been allocated for current, 477.89 billion for capital, and 375.24 billion for financial management. This year's expenditure estimate is 5.6 percent higher than the initial budget of the last fiscal year and 18.2 percent higher than the revised estimate.
