Provincial Governments Show Disappointing Spending Levels Midway Through Fiscal Year

Expenditure status of provincial governments appears dismal even as more than half of the current fiscal year has passed.

According to the 'Mid-term Evaluation Report of Budget for FY 2082/83' made public by the Ministry of Finance on Tuesday, the spending by the provinces has been notably weak.

Out of the total budget of Rs 287.7033 billion allocated for all seven provinces for the current fiscal year, only 14.16 percent has been spent as of the end of Poush.

The report indicates that provincial current expenditure reached only 21.43 percent, while capital expenditure stood at a mere 9.33 percent. The report notes that zero expenditure has been recorded until Poush against the Rs 97.50 million allocated for financial management in the provinces.

Madhesh Province showed the lowest capital expenditure at only 3.36 percent, whereas Lumbini Province recorded the highest capital expenditure at 18.04 percent. The weak status of capital expenditure, which is directly linked to development and structural transformation, raises questions about the budget implementation capacity of the provinces.

Bagmati Province appears relatively ahead in terms of expenditure on a provincial basis. Bagmati, which presented a budget of Rs 67.4773 billion for this year, has spent 14.20 percent of its total budget by the end of Poush. This province shows 22.48 percent expenditure under the current heading and 8.99 percent under the capital heading.

Madhesh Province showed the weakest performance, having spent only 7.71 percent of its total budget. This province, which presented a budget of Rs 46.9834 billion for the current fiscal year, managed to spend only about Rs 3.6236 billion by the end of Poush. Madhesh's current expenditure progress for this period stands at 15.58 percent, and capital expenditure at 3.36 percent.

Koshi Province has spent 16.84 percent of its total budget. Koshi's current expenditure is 23.23 percent, capital expenditure is 9.96 percent, and expenditure under financial management is zero. This province allocated Rs 100 million for the financial management heading for the current fiscal year but has not spent any amount to date.

The situation in Gandaki and Lumbini provinces is also not very encouraging. Gandaki has spent 16.68 percent of its total annual budget, and Lumbini has spent 20.45 percent. Capital expenditure in both provinces stood at 14.13 percent and 18.04 percent, respectively.

The spending capacity of Karnali and Sudurpashchim provinces, considered regions lagging in development, appears weak as of the end of Poush. Out of the total budget of approximately Rs 32.9967 billion allocated for the current fiscal year, only about Rs 4.5334 billion, or 13.74 percent of the annual allocation, has been spent so far.

Karnali's current expenditure is 23.83 percent, capital expenditure is 7.90 percent, and expenditure under financial management has shrunk to zero. The province had allocated Rs 61.50 million for the financial management heading for the current fiscal year, but no amount has been spent to date.

Sudurpashchim's expenditure is 10.94 percent. The province, which presented a total budget of Rs 33.4760 billion for the current fiscal year, managed to spend only about Rs 3.6621 billion by the end of Poush. Sudurpashchim's current expenditure progress is 19.47 percent, and capital expenditure progress is 5.08 percent.