Gandaki Province Faces Sluggish Budget Expenditure in Fiscal Year 2082/83

Pokhara. The budget expenditure status of the Gandaki Province government remains dismal again this year.

According to the Provincial Comptroller Office, only about 28.5 percent of the total budget has been spent by the end of Chaitra in the current fiscal year 2082/83. The government had introduced a total budget of 31.79 billion 99 million rupees for the current year. The office stated that only 9.08 billion 14 million 47 thousand rupees has been spent so far, with 25.52 percent spent on capital expenditure and 33.51 percent on recurrent expenditure.

This expenditure is nearly 7 percent lower compared to the same period last year, when it had exceeded 35 percent. Experts suggest that with only 3 months left in the fiscal year, the failure to spend government funds indicates a slowdown in development and construction activities. Out of the 19.10 billion rupees allocated for capital expenditure, the government has only been able to spend 4.86 billion. Out of the 12.62 billion 45 million rupees in recurrent budget, 4.22 billion 99 million has been spent.

By ministry, the Ministry of Forest and Environment has spent the most at 37.5 percent. The Ministry of Industry and Tourism has spent the least at 11.3 percent. The Ministry of Physical Infrastructure Development received the largest share of the province's budget, spending 28.6 percent of its 12.15 billion rupee allocation. The forest budget was 1.06 billion and the tourism budget was 850 million.

Among those with significant budgets, the Ministry of Energy, Water Resources and Drinking Water spent 1.40 billion out of 3.88 billion. The Ministry of Health spent 1.08 billion out of its 3.39 billion budget, while the Ministry of Social Development, Youth and Sports spent 667.8 million out of 2.40 billion.

The Ministry of Agriculture and Land Management spent 550 million out of its 2.09 billion allocation, while the Ministry of Finance spent 44.7 million out of a 233.1 million rupee budget. The Office of the Chief Minister and Council of Ministers, which had a budget of 1.04 billion, showed an expenditure of 186 million. The government has disbursed 1.03 billion out of the 2.02 billion budget intended for transfer to local levels this year.

The Ministry of Finance stated that budget expenditure has not met expectations this year due to reasons including elections, protests, and budget cuts. A major reshuffle of ministers took place in Gandaki just two days ago. Jit Sherchan has replaced Dr. Takraj Gurung as the Finance Minister.

Chief Minister Surendra Raj Pandey has already informed the Provincial Assembly about why capital expenditure in the province is lower this year compared to the last.

Experts argue that even when plans are implemented, the tradition of making payments only in Ashar prevents improvements in the expenditure ratio. 'Work is ongoing on many projects. Some bills have also been submitted,' said the outgoing Finance Minister Dr. Gurung, 'The practice is to make payments for bills received now only at the end of Jestha or in Ashar. This is why higher expenditure is seen in Ashar.'

However, he admitted that the implementation of plans has not been satisfactory.

The provincial government claims to have reduced some recurrent expenditure this year through administrative restructuring. 32 offices have been merged into 17, and some offices have been abolished permanently.

According to the Chief Minister's Office, this has led to a reduction of 304 positions and an annual saving of approximately 500 million rupees.

The Ministry of Finance has revised its estimate, projecting only 60 to 65 percent expenditure for this year. The provincial government has already entered the process of formulating the budget for the next year. The government has stated that it will call for a budget session within Baisakh, after which pre-budget discussions will begin.