Development expenditure just 29 percent till third quarter of current FY

KATHMANDU, APRIL 14 :The development expenditure has declined sharply, reaching only 29 percent of the total allocation by the third quarter of the current fiscal year 2024/25.

According to data from the Financial Comptroller General Office (FCGO), the government’s capital expenditure as of April 12, 2025, stood at just Rs 102.9 billion. This is out of a total allocation of Rs 352.35 billion under the capital expenditure heading for the current fiscal year—amounting to only 29.2 percent of the annual budget.

It’s not just development spending that has been sluggish. Overall budget expenditure during this period has also remained weak. As of April 13, only 53.67 percent of the total budget has been utilized.

The government had unveiled a total budget of Rs 1.8603 trillion for the current fiscal year. Of this, Rs 998.50 billion had been spent by April 13.

Similarly, out of the Rs 1.14066 trillion allocated under the recurrent expenditure heading, 59.45 percent—or Rs 678.06 billion—has been spent, according to the FCGO.

Expenditure under the financial management heading reached 59.23 percent of the annual allocation by April 13. The government had earmarked Rs 367.28 billion for this category, of which 59.23 percent has been spent.

Revenue collection also weak

Revenue collection during this period has also been underwhelming. Against a target of Rs 1.4193 trillion in total revenue, only Rs 821.67 billion—equivalent to 57.89 percent of the target—had been collected by April 11.

Foreign grants have fared even worse. Out of a target of Rs 52.32 billion in foreign grants for the year, only Rs 14.26 billion—or 27.27 percent—has been received so far.