Boost Capital Spending

Poor capital expenditure has become a perennial problem in Nepal. As the seventh month of the current fiscal year 2024/25 draws to a close, the mobilisation of the capital budget of the federal government has remained sluggish with just 22.08 per cent utilisation, down from 24.59 per cent during the same period last fiscal. Not just the federal government, provincial governments are also reeling from the same problem of abysmally low capital expenditure. After nearly a decade of foraying into the federal set-up, it seems that federalism is still a work in progress.