Budgetary spending of Bagmati dismal at below 26 percent

BAGMATI, MARCH 22: Bagmati Province has spent a staggeringly low 25.62 per cent of its total budget in the first eight months of the current fiscal. The provincial government had introduced a budget of Rs 64.05 billion, but only Rs 10.05 billion has been spent during the review period, according to Indaraj Sanyal, Information Officer at the Ministry of Economic Affairs and Planning. Of the total expenditure, 35.22 percent went toward recurrent expenses, while capital expenditure remained at a meager 19.94 percent.

Among government offices, the Office of the Provincial Chief Attorney recorded the highest spending at 47.69 percent, followed by the Provincial Assembly Secretariat at 38.22 percent. In contrast, the Ministry of Tourism, Industry, and Cooperatives had the lowest expenditure, utilizing only 9.79 percent of its allocated budget.

Revenue collection below expectations

Bagmati Province has also faced a consistent decline in revenue collection. From mid-July to mid-March of 2025/26, it managed to generate only 38.13 percent of the targeted revenue. The provincial government had set a goal of Rs 29.55 billion from revenue sharing, but only Rs 13.90 billion—47.03 percent of the target—was collected.

Similarly, while the province expected to receive Rs 15.57 billion in grants from the federal government, only Rs 8.18 billion (52.58 percent) was disbursed during the review period. The government also aimed to collect Rs 4.53 billion from internal sources, but only Rs 2.37 billion (52.41 percent) was realized.

Declining revenue trends in recent years

The revenue shortfall has been a recurring issue. Last fiscal year, Bagmati Province fell short of its target by Rs 9.31 billion, collecting only Rs 39.22 billion against the Rs 48.25 billion goal. The trend was similar in the previous fiscal year when the province collected 17 per cent less than estimated.

Hari Prasad Upadhyay, Chief of the Bagmati Provincial Treasury and Controller of Accounts Office, Hetauda, attributed the decline to lower collections of value-added tax, income tax, natural resource extraction fees, and land revenue. Additionally, the federal government’s withdrawal of certain projects due to economic challenges has further impacted the province’s finances.

With low budget spending and weakening revenue collection, the province faces growing financial challenges, raising concerns about its fiscal management and economic outlook.