‘Capital expenditure very poor’
Kathmandu, July 8: When only a week is left to end the current fiscal year, the capital expenditure stands only 57. 43 per cent.
The capital expenditure stands only at 57.43 per cent as of July 7, according to the daily report of the Financial Comptroller General Office under the Ministry of Finance.
Of the Rs. 335.17 billion allocated under capital expenditure, only Rs. 192.47 billion has been spent till the date.
Likewise, the recurrent expenditure of the government reached 83.39 per cent of Rs. 670 billion during the review period. The government had allocated Rs. 803 billion in the heading of recurrent expenditure for the current fiscal year.
The government had unveiled a budget of Rs. 1,278.99 billion for the current fiscal year in May last year.
The revenue collection of the government stands at Rs. 666 billion which is 91.34 per cent o f the target (Rs.730 billion) during the review period.
Economist Prof. Dr. Chandra Mani Adhikari said that the rate of capital expenditure for this year was very poor.
He, however, said that it was not a new thing, but the government has never thought of identifying the weaknesses, hindering the capital expenditure capacity.
The rate of capital expenditure is less compared to the last year's expenditure, and it indicates that the government failed to expedite the development works rapidly even it introduced budget in time.
The incumbent government should move forward with strategic plans to solve the existing problems regarding poor capital expenditure, he said, adding that it would be impossible to make the country a prosperous without spending a huge amount of budget in the infrastructure sector.
"If we look the capital expenditure trend of the last five years, the rate of capital expenditure has been very low. Worse is the practice of spending around 41-51 per cent budget of capital expenditure of the total expenditure in the last two months of the fiscal year," he said.
Spending a large portion of the capital budget in the eleventh hour every year shows the development works are not qualitative and there is weak financial discipline, he said.