Capital Budget 32% Spent in Just 29 Days

The government has once again followed the trend of "Asare Bikash" (end-of-year spending rush), with a massive spike in capital expenditure in the final month of the fiscal year 2081/82. According to the Office of the Financial Comptroller General, capital spending reached NPR 211.35 billion by the 29th of Asar, up from NPR 143.38 billion at the end of Jestha—an increase of NPR 67.96 billion in just one month. Despite this surge, only 59.98% of the total allocated capital budget of NPR 352.35 billion has been spent, indicating failure in achieving the annual target.

Meanwhile, the government’s growing reliance on virement (reallocation of budget) continues. In fiscal year 2080/81 alone, the government spent NPR 256.41 billion through virement. This year, over NPR 6.5 billion was reallocated just in Chaitra and Baisakh, with significantly more expected during Jestha and Asar. Notably, NPR 5.28 billion allocated for national pride projects was spent elsewhere, directly contradicting budget statement rules that prohibit such reallocations. This practice raises serious concerns over the government’s budget discipline and quality of expenditure.

Despite public statements of concern from the Prime Minister and Finance Minister regarding project delays, the reality on the ground tells a different story. Critical infrastructure like the Daunne section of the East-West Highway remains vulnerable to weather disruptions. Former officials highlight that budget focus tends to shift from major national projects to politically motivated, small-scale, constituency-targeted programs. By the 29th of Asar, total government expenditure had jumped by over NPR 226 billion in just 29 days—reaching NPR 1.509 trillion out of the total NPR 1.860 trillion annual budget—showing once again that fiscal discipline often collapses under the pressure of year-end spending.