11.04% budgetary expenditure in three months

Kathmandu October 26- Only 11.04% of total approved amount of allocated budget has been spent after completion of three months of current fiscal year 2071/72.  Likewise, 3.23% of total allocated development (capital) spending budget, 15.66% of general expenses (current) budget  and 6.19% of financial management budget has been spent according to financial comptroller office.

Similarly, only 90 billion 431 million 157 thousands of 819 billion 470 million budget on implementing policies and programs for the current fiscal year has been spent till Saturday. While 75 billion 851 million 670 thousands of 484 billion 266 million 400 thousands budget has been spent on current terms. On Capital terms, 6 billion 754 million 930 thousands of 126 billion 325 million 300 thousands budget has been spent and only 7 billion 824 million 556 thousands has been spent on 126 billion 325 million 300 thousands on financial management terms.  

According to financial secretary Suman Prasad Sharma, allocated budget could not be spent due to obstruction in supply of construction material in the time of initial development work.' First three months is a phase of preparation for starting construction work, we expected more capital expenditure this year, Sharma said, 'as usual, we had given authorization for expenditure on the first day of fiscal year, but the current supply problem has halted development and construction plan. If it continues for longer period, it may affect entire economic development of the nation'.

Due to lack of supply of fuel by ongoing month lengthy blockade by India, both small and big development project has been stalled.   Construction materials for the project have been stranded in Indian Customs port.  Due to lack of effective implementation of the budget, government target of economic growth, poverty reduction and employment seems to be difficult to achieve.   Continued Banda in Terai has also caused closure of industries and factories.

Nepal Federation of Construction Entrepreneurs spokesman Vishnu  Budhathoki said that due to lack of fuel, thousands of development projects  of central to local level has been halted. He further adds,' Development/construction work had to start from September/ October but has failed due to shortage of fuel'.

Government has aimed to achieve ambitious goal of poverty reduction, adequate employment within the country and increase in national productivity to upgrade the country to developing countries from least developed countries by 2022 AD. However, apparent state of budget implementation shows a very challenging road ahead for government to upgrade the country into developing countries in next 8 year.