Public Spending Bottlenecks

Seven months into fiscal year 2082/83 BS, the government’s budget performance appears sluggish. Fresh data from the Financial Comptroller General Office show that revenue collection has reached only 44 per cent of the annual target, while total expenditure stands at around 40 per cent. Of the Rs 1,964 billion national budget, just over Rs 801 billion had been spent by mid-February. The fiscal engine is moving far too slowly for an economy in urgent need of momentum. A closer look at the figures highlights the imbalance. Current expenditure has reached nearly 48 per cent of its target, indicating that the government is largely keeping pace with salaries, pensions and routine administrative costs. Capital expenditure, however, tells a different story. Only 15.62 per cent of the development budget has been utilised so far — just Rs 63.7 billion out of an allocation of Rs 407.8 billion. Revenue performance also remains below expectations. The government has collected about Rs 682 billion, with tax revenue reaching roughly 45 per cent of its target and non-tax revenue slightly lower. Foreign aid inflows are the weakest component, at just 24 per cent of the annual goal.