Average budget spending of provinces disappointingly low

KATHMANDU, FEBRUARY 9: The budget expenditure of all seven provinces in the first half of the fiscal year 2024/25 has been disappointingly low. According to the half-yearly review report released by the government, the provinces have, on average, spent only 16.47 percent of their annual budget allocation so far.

For the current fiscal year, the combined budget of these provinces stood at Rs 278.69 billion. However, as of January 13, 2025, only Rs 45.9 billion has been spent.

Province-wise Budget Expenditure Breakdown:

• Madhes Province had a budget of Rs 43.89 billion but has spent only Rs 2.46 billion in the first six months, which is 5.61 percent of the total allocation.
• Sudurpaschim Province had a budget of Rs 31.62 billion and spent Rs 4.68 billion, achieving an expenditure rate of 14.82 percent.
• Karnali Province allocated Rs 31.41 billion but spent only Rs 4.75 billion, or 15.14 percent.
• Lumbini Province, with an annual budget of Rs 38.97 billion, spent Rs 7.53 billion, which accounts for 19.36 percent of the total.
• Gandaki Province also spent 19.36 percent of its Rs 32.97 billion budget, amounting to Rs 6.38 billion.
• Bagmati Province, which had the largest budget among all provinces at Rs 64.54 billion, has spent Rs 10.29 billion, or 16.27 percent.
• Koshi Province leads with the highest expenditure rate, spending 24.85 percent of its Rs 35.27 billion budget.

The sluggish budget expenditure has raised concerns about the efficiency of fiscal management and the ability of provincial governments to execute development projects within the allocated timeframe. Experts suggest that provinces must improve financial planning and accelerate spending to ensure effective utilization of public funds.