Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The government has spent only 40.8 percent of its allocated annual budget in the first seven months of the current fiscal year 2082/83, with capital expenditure remaining critically low at just 15.62 percent, according to official data.
Figures released by the Financial Comptroller General Office show that both revenue mobilization and expenditure performance have remained below expectations as of Magh-end (mid-February 2026).
Overall Budget Spending
The government had allocated a total budget of Rs1.964 trillion for the current fiscal year. By Magh-end, total expenditure stood at Rs801.37 billion, equivalent to 40.8 percent of the annual allocation.
Under the recurrent expenditure heading, Rs1.180 trillion was allocated for the fiscal year. Of this, 47.62 percent — amounting to Rs562.37 billion — has been spent.
In contrast, capital expenditure remains significantly weak. Of the Rs407.88 billion allocated under the capital heading, only Rs63.72 billion has been spent, representing just 15.62 percent progress. The low capital spending raises concerns over delays in infrastructure projects and sluggish development activity.
Under the financing heading, which includes debt servicing and financial management expenses, 46.71 percent of the allocated Rs375.24 billion has been utilized. Expenditure under this category has reached Rs175.27 billion as of Magh-end.
Revenue Mobilization Status
On the revenue side, the government has set a target of Rs1.533 trillion in revenue collection for the current fiscal year. By mid-February, 44.49 percent of that target has been achieved, with total revenue collection reaching Rs682.16 billion.
Tax revenue accounts for Rs599.31 billion, representing 45.21 percent of the annual tax target. Non-tax revenue collection stands at Rs65.71 billion, which is 42.55 percent of the annual non-tax target.
Foreign Grant Underperformance
The government had aimed to receive Rs53.44 billion in foreign grants for the fiscal year. However, by Magh-end, only Rs12.83 billion has been realized — just 24.02 percent of the annual target.
Fiscal Pressure Mounts
The slow pace of capital expenditure and underperformance in foreign grants highlight structural challenges in budget execution. Economists have repeatedly warned that weak development spending could dampen economic growth, particularly in infrastructure, construction, and job creation sectors.
With nearly five months remaining in the fiscal year, fiscal authorities face mounting pressure to accelerate project implementation, improve absorption capacity, and enhance revenue mobilization to maintain macroeconomic stability and meet annual fiscal targets.
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