Koshi Province Government Faces Disappointing Financial Performance in First 10 Months of FY 2082/083

Biratnagar. The expenditure and income situation of the Koshi Province government for the first 10 months of the current financial year (2082/083), i.e., until the end of Baisakh, appears disappointing. Compared to the data from the past three years, both budget expenditure and internal income have decreased in the current financial year.

According to the details published by the Ministry of Economic Affairs and Planning, the total expenditure of the provincial government until the end of Baisakh has decreased by 21.83 percent compared to the same period last year. Only 36.29 percent, or 13 arba 7 crore 11 lakh, of the budget allocated for the current financial year has been spent by the end of Baisakh. Of this, capital expenditure is 30.91 percent, or 5 arba 29 crore 87 lakh, current expenditure is 35.50 percent, or 4 arba 82 crore 77 lakh, financial management expenditure is 45.42 percent, or 4 crore 54 lakh, and local level grants are 56.01 percent, or 2 arba 89 crore 93 lakh. Whereas, in the same period of the last financial year (2081/082), the total expenditure was 47.4 percent and in the financial year 2080/081, it was 43.1 percent. Capital expenditure in the previous financial year was 39.3 percent.

The provincial government had presented a budget of 36 arba 2 crore 2 lakh for the current financial year, with 13 arba 60 crore 7 lakh allocated for current expenditure, 17 arba 14 crore 30 lakh for capital expenditure, 10 crore for financial management, and 5 arba 17 crore 65 lakh for local level grants.

There has also been a significant decline in the spending capacity of ministries and bodies. The expenditure progress of the Ministry of Economic Affairs and Planning, the main body for budget formulation, is the lowest at only 3.73 percent. Similarly, the Ministry of Health has spent 43.06 percent, the Ministry of Water Supply, Irrigation and Energy 41.80 percent, the Ministry of Physical Infrastructure Development 32.57 percent, the Ministry of Industry, Agriculture and Cooperatives 32.54 percent, the Ministry of Social Development 55.21 percent, the Office of the Chief Minister and Council of Ministers 23.94 percent, the Ministry of Internal Affairs and Law 27.02 percent, and the Ministry of Tourism, Forest and Environment 40.25 percent.

The provincial government spent the most in the month of Chaitra, with an expenditure of 2 arba 45 crore 17 lakh in that month alone, while the lowest expenditure was in the month of Shrawan, with only 8 crore 28 lakh. In the month of Baisakh alone, 2 arba 2 crore 70 lakh was spent.

Decline in Income Also

The Koshi Province government is also struggling to meet its revenue and grant receipt targets set for the current financial year 2082/083. According to the data until the end of Baisakh, the progress in income until Baisakh is only an average of 69.48 percent compared to the annual target set by the government.

The provincial government had set a target of collecting 5 arba 50 crore rupees from its own internal sources, but only 3 arba 49 crore 67 lakh has been collected in the 10-month period. This is only 63.58 percent of the target. Compared to the previous year, internal revenue has decreased by 7 percent. Last year, 3 arba 75 crore 98 lakh revenue was collected during this period.

There has also been a decrease in grants received from the federal government. There has been a decline of 0.47 percent in federal financial equalization grants, 17.37 percent in conditional grants, and 59.83 percent in special grants. Overall, total revenue and grant receipts have decreased by 2.08 percent compared to last year.

Out of the annual target of 12 arba 74 crore 66 lakh for federal revenue sharing, which constitutes a large portion of the province's income, only 9 arba 80 crore 45 lakh (76.92 percent) has been received by the end of Baisakh.

Similarly, out of the target of 8 arba 98 crore 34 lakh for financial equalization grants from the federal government, only 6 arba 32 crore 70 lakh (70.43 percent) has been received, and out of the target of 4 arba 57 crore 10 lakh for conditional grants, only 2 arba 81 crore 37 lakh (61.56 percent) has been received, according to the data.

Likewise, receipts from special and complementary grants have also been less than the target. Out of the special grant target of 55 crore 72 lakh, only 18 crore 39 lakh (33 percent) has been received, and out of the complementary grant target of 39 crore 17 lakh, only 1 crore 29 lakh (33.03 percent) has been earned.

The government had estimated a total income of 32 arba 74 crore 99 lakh rupees this year, but by the end of Baisakh, only a total of 22 arba 75 crore 51 lakh rupees has been received in the government treasury. Including the cash balance of 3 arba 13 crore rupees from last year, the government's total estimated income is 35 arba 87 crore 99 lakh rupees, the ministry stated. This decline in both expenditure and income is likely to create further pressure on the budget formulation and implementation for the upcoming year.