Bagmati Province Government Shows Sluggish Budget Spending After Eight Months of Fiscal Year 2082/083

Makwanpur. The Bagmati Province Government appears significantly slow in spending its budget for the current fiscal year (2082/083). After eight months of the fiscal year (from Shrawan 1 to Falgun end), the provincial government has failed to spend even a quarter of its total budget.

In eight months, the provincial government has spent only 22.31 percent of its total annual budget. This creates pressure on the government to spend 78 percent of the budget in the remaining four months of the fiscal year.

According to the expenditure details published by the Ministry of Finance and Planning up to the end of Falgun, out of a total of NPR 67.4773 billion, only NPR 15.0508 billion (22.31 percent) has been spent so far. The status of capital expenditure looks particularly precarious.

For capital expenditure, directly linked to development works, only NPR 7.09018 billion (17.12 percent) has been spent out of the allocated NPR 41.4335 billion. More than 83 percent of the budget set aside for development remains unspent.

The provincial government has comparatively spent more on administrative and general (current) expenditures. Out of the NPR 26.043799 billion allocated for current expenses, 30.56 percent (NPR 7.959025 billion) has been spent.

Sources close to the government indicate that the initial phase saw delays in development and budget program implementation due to the time taken for government changes and full formation at the start of the fiscal year. Furthermore, budget spending was directly affected by the 'Janjati' agitation, and subsequent budget cuts due to damages incurred during the agitation led to revisions in plans and programs.

Administrative delays in the tender invitation and agreement processes for large projects mean that more than half of the fiscal year is spent on paperwork. The lack of proactive engagement from political and administrative leadership in regular monitoring and problem-solving for projects has prevented work from gaining momentum.

Due to the pressure to utilize a large portion of the budget by the end of Ashadh, the trend of 'Asare development' (last-minute spending spree) is certain to repeat. Spending around 80 percent of the budget in the remaining four months is technically and practically very difficult. The recurring pattern where the Bagmati Province's spending capacity is questioned every year stems from the government's inability to stop the practice of pouring out funds in the final moments of Jestha and Ashadh.

• Expenditure by Ministry:

Among the 13 ministries and subordinate bodies of the provincial government, the Ministry of Labor, Employment, and Transport has spent the highest proportion of its budget, at 38.45 percent (NPR 277.6 million). Similarly, the Ministry of Health has spent NPR 1.3136 billion (37.10 percent), and the Ministry of Cooperatives and Poverty Alleviation has spent 34.53 percent, amounting to NPR 77.5 million.

The Ministry of Physical Infrastructure Development, which received the largest budget allocation from the provincial government, has spent only 23.46 percent. This ministry, responsible for all infrastructure development work, spent NPR 5.0503 billion in eight months.

Likewise, the Chief Minister and Council of Ministers' Office spent NPR 10.18 million (25.17 percent), the Ministry of Finance and Planning spent NPR 69.1 million (33.24 percent), and the Ministry of Industry, Commerce, Land, and Administration spent NPR 147.3 million (22.72 percent) of their budgets.

Furthermore, the Ministry of Agriculture and Livestock Development spent NPR 386.4 million (17.75 percent), the Ministry of Water Supply, Energy, and Irrigation spent NPR 1.2906 billion (19.71 percent), the Ministry of Home Affairs and Law spent NPR 172.7 million (33.39 percent), the Ministry of Culture and Tourism spent NPR 245.6 million (7.63 percent), the Ministry of Forest and Environment spent NPR 1.0369 billion (28.22 percent), the Ministry of Youth and Sports spent NPR 121.7 million (12.07 percent), and the Ministry of Social Development spent NPR 746.6 million (20.90 percent).

The Provincial Legislature spent NPR 105.6 million (37.92 percent), the Provincial Public Service Commission spent NPR 37.9 million (43.85 percent), and the Office of the Attorney General spent NPR 9.2 million (37.10 percent).

The expenditure by the Provincial Policy and Planning Commission for both current and capital budgets is very low, and a large sum allocated for employee benefits, retirement benefits, and miscellaneous headings (over NPR 4.42 billion) remains unspent as of the end of Falgun.