Wednesday, 17 July, 2024

21% capital budget left to be spent in a week


By A Staff Reporter
Kathmandu, July 9: The government capital expenditure is below 50 per cent mark till July 7, Wednesday, according to the Financial Comptroller General Office (FCGO).
Although the mobilisation of capital budget is improved against the last year’s spending in the current Fiscal Year 2020/21, the government has a challenge to meet its revised target of 71.3 per cent (Rs. 251.62 billion) execution of development expenditure Rs. 352.91 billion.
By July 4, 2020, only 38 per cent budget was mobilised in the last fiscal but it has reached 49.65 per cent this year by 7 July. This poor performance so far is due to the poor performance of the development ministries and agencies and partly the pending payments to the private sector on the part of the government, according to the Ministry of Finance.
Likewise, financing budget execution has just crossed the half-way mark to reach 53.65 per cent. With 86.06 per cent of the recurrent expenditure, total budget mobilisation has reached 73.55 per cent by Wednesday.
According to the revised estimates of the budget, the government aims to mobilise 91.19 per cent of the total size Rs. 1474 billion. Recurrent budget is lowered to 91.4 per cent of Rs. 948.94 billion, and financing to 72.15 per cent of Rs. 172.78.
However, the Finance Ministry sources told The Rising Nepal that about 85.5 per cent of the total budget was expected to be utilised by the end of the year. Restrictions and lockdowns put in place to prevent the spread of COVID-19 had disrupted the businesses, industries and development work which resulted in poor performance of capital budget, said the MoF.
However, revenue collection is on the way to meet the target with 85.59 per cent collection by Wednesday.
The FCGO report showed that 88.4 per cent tax revenue target was achieved collecting Rs. 803 billion. The government aimed to collect Rs. 1011 billion in revenue, grants and other receipts.
Last year’s status was rather pathetic with just 64.05 per cent revenue collected a week before the conclusion of the fiscal year. Last year’s revenue target was Rs. 1112 billion of which Rs. 7094 was collected till July 7, 2020.