Over 15% of total expenditure allocated to debt repayment in current FY

KATHMANDU: The government disbursed Rs 54.46 billion to settle its debt, nearly doubling the expenditure on development projects in the initial four months of the present fiscal year.

As per the Financial Comptroller General Office (FCGO), the government’s capital expenditure reached Rs 29.98 billion. Out of the total expenditure of Rs 355.63 billion in the review period, over 15 percent was allocated for interest and principal repayment on public borrowing. The government has earmarked Rs 307.45 billion for fiscal activities in 2023/24.

Despite the improvement in capital expenditure during this year’s review period, as indicated by FCGO records, the government spent 9.93 percent from mid-July to mid-November, compared to 6.91 percent in the same period last year.

For the current fiscal year, the government allocated Rs 302.07 billion for the construction of development projects, with only around one-tenth expended thus far. In the previous fiscal year, the government had allocated Rs 380.38 billion, with only Rs 26.29 billion spent in the initial four months.

Simultaneously, the government achieved 19.45 percent of the revenue target for the current fiscal year. Despite a revenue collection goal of Rs 1.422 trillion, the government amassed earnings of Rs 276.64 billion in the initial four months.

While grappling with revenue generation challenges amid the ongoing economic downturn, the government received minimal foreign assistance during the review period. Foreign grants amounted to just Rs 2.758 billion, constituting a mere 5.53 percent of the annual target of Rs 49.94 billion.