Lumbini Province Government Spends Less Than Half of Annual Budget in 11 Months

Butwal. The Lumbini Province government has not been able to spend even half of its annual budget in the first 11 months of the current financial year. In 11 months, the provincial government has only been able to spend 47.20 percent of its annual budget.

According to the Lumbini Province Treasury Comptroller Office, as of the end of Jestha, 50.67 percent of the current expenditure and 44.92 percent of the capital expenditure has been spent.

For the current financial year, the provincial government had allocated a total budget of Rs 38.81 billion, including Rs 23.47 billion 14 million 65 thousand for capital expenditure and Rs 15.43 billion 85 million 35 thousand for current expenditure.

The total expenditure increased by about 5 percent in the month of Jestha to 44.92 percent, from 39.91 percent at the end of Baishakh. However, experts say that the possibility of large-scale capital expenditure in the remaining period is low.

Professor and economist Madhav Poudel said that the delay in budget implementation is an old problem of the provincial government. According to him, if the tendency to see slowness in project implementation throughout the year and spend in a hurry at the end of the financial year continues, the expected results cannot be achieved.

He mentioned that after the budget for the new financial year is released, the government's focus shifts more towards the programs for the upcoming year than managing the budget of the current year. He stated that this trend is seen in all three tiers: federal, provincial, and local.

The Lumbini Province government has already released a budget of Rs 37.38 billion 45 million for the upcoming fiscal year 2083/084 on Asar 1. Out of this budget, Rs 22.71 billion 65 million 40 thousand has been allocated for capital expenditure and Rs 11.11 billion 27 million 10 thousand for current expenditure. The total budget, including the amount for financial management, has reached Rs 37.38 billion 45 million.

The new budget is approximately Rs 1.52 billion 55 million less than the current financial year's budget. Stakeholders suggest that the provincial government should pay special attention to the effective implementation of the upcoming year's budget, as the implementation of the current year's budget has been weak.

How much has each ministry spent?

Most of the 12 ministries of the Lumbini Province government have not been able to spend even 50 percent of their budget even after 11 months of the current financial year. According to the Provincial Treasury Comptroller Office, the expenditure status of some ministries is very weak, while some ministries have made comparatively good progress.

The ministry with the lowest expenditure is the Ministry of Internal Affairs and Law. This ministry has spent only Rs 46 million as of the end of Jestha, which is only 15.18 percent of its total budget.

After that, the Ministry of Youth and Sports has spent Rs 73.6 million, which is 19.18 percent of the budget allocated to this ministry. The Ministry of Economic Affairs and Planning has implemented 29.39 percent of its budget by spending Rs 482 million.

The Office of the Chief Minister and Council of Ministers has spent Rs 161 million in 11 months, which is 32.10 percent of its total budget. The Ministry of Social Development has achieved 36.41 percent progress by spending Rs 1.31 billion 70 million.

The Ministry of Industry, Tourism and Transport has implemented 37.13 percent of its budget by spending Rs 707 million. The Ministry of Agriculture, Land Management and Cooperatives has spent 42.73 percent by spending Rs 643 million.

The expenditure of the Ministry of Urban Development and Water Supply has reached Rs 2.42 billion 22 million, which is 43.10 percent. The Ministry of Energy, Water Resources and Irrigation has implemented 47.06 percent of its budget by spending Rs 1.26 billion.

Similarly, the Ministry of Forests and Environment has achieved 48.66 percent progress by spending Rs 1.23 billion 96 million. The Ministry of Physical Infrastructure Development has spent the largest amount, Rs 4.98 billion 82 million, which is 50.26 percent of its total budget.

The ministry with the highest percentage of expenditure is the Ministry of Health. This ministry has spent Rs 3.10 billion 31 million, which is 62.77 percent of its total budget.

The spokesperson of the Lumbini Province government and Minister of Health, Ramji Ghimire, said that although plans were made to spend according to the target in the current financial year, expected progress could not be achieved due to various reasons. According to him, budget implementation may have been affected by employee transfers, various protests, and administrative obstacles.

Minister Ghimire claimed that the percentage of expenditure will increase further as the payment process for various projects is still ongoing, and expressed confidence that the final expenditure will reach around last year's level.