Mid-year review of current FY’s budget released

The Ministry of Finance has released the mid-year review of the current fiscal year’s (2082/83) budget today.

According to the report, the economic growth target for the current FY would be around 6%.
The government’s daily administrative expenses and debt principal and interest payments have remained high, while its capital expenditures look low. Until the mid-year review period, the government has managed to spend only 12.12% of the budget for development projects, a dip from 16.16% in the same period of the previous FY.

Out of the total Rs 407.888 billion allocated under capital expenditures, only Rs 49.42 billion was spent, indicating the slow pace of development activities in Nepal.

Similarly, of Rs 1964.11 billion budget introduced for the current FY, only 35.14% (Rs 690.2178 billion) was spent as of six months of the year. The expenditure was slightly below from 35.88% in the same period of the previous FY.

Under current financial transfers, 41.25%, amounting to Rs 487.14 billion, has been utilised, up from 39.62%. Additionally, 40.95% (Rs 153.6469 billion) of the budget for financial management, covering debt principal and interest payments, has been spent. The expenditure was down from 43.20% in the same corresponding period of the previous FY.