Seven provincial governments spend Rs 117 billion in 10 months

KATHMANDU, JUNE 11:According to the Nepal Rastra Bank (NRB), the seven provincial governments spent Rs 117 billion in total during the first ten months of the current fiscal year. During the same period, they mobilized resources totalling Rs 161.77 billion.

Based on the National Natural Resources and Fiscal Commission recommendations, the federal government provided Rs 60 billion to the provinces as fiscal equalisation grants. In addition, Rs 25.84 billion was allocated as conditional grants, and Rs 6.2 billion as complementary grants for infrastructure project implementation.

Of the total resources mobilized by the provinces, Rs 123.15 billion came from federal transfers—including both grants and revenue shared from the divisible fund—while Rs 38.62 billion was raised by the provinces themselves through internal revenue sources.

As of the end of Baisakh (mid-May), the total cash balance held in various government accounts at the NRB—including those of provincial and local governments—stood at Rs 360.98 billion. In comparison, the balance at the end of Asar 2081 (mid-July 2024) was Rs 93.96 billion.

During the review period, the Government of Nepal mobilized total revenue of Rs 922.43 billion, which includes allocations to provincial and local levels. Of this, Rs 828.94 billion came from tax revenue, while Rs 93.49 billion was generated as non-tax revenue.

According to the Office of the Financial Comptroller General, the total government expenditure during the first ten months of 2024/25 reached Rs 1.157 trillion. This included Rs 773.23 billion in recurrent spending, Rs 120.38 billion in capital expenditure, and Rs 264.29 billion in financing-related expenses.