Kathmandu, June 21
It seems that the government will not be able to spend the budget even as per its revised estimates that were made during the mid-term review of the current fiscal year’s budget. The government had revised the estimates of expenditure during the half-yearly review of the fiscal budget 2017-18. However, only 80 per cent of the revised estimate has been spent till June 19, according to the Financial Comptroller General Office (FCGO).
The Ministry of Finance had revised the spending target to Rs 1,082.99 billion in this fiscal during the half-yearly review against the appropriated budget size of Rs 1,278.99 billion. There is less than a month’s time for the new fiscal year to begin, however, the government’s spending stood at Rs 870.24 billion till June 19.
The government has spent only around 83 per cent of the capital budget based on revised estimates despite bringing down the capital budget size by around Rs 100 billion during the half-yearly review. The government has spent Rs 194.66 billion till June 19, where as the government has to spend Rs 234.62 billion as capital expenditure in this fiscal. Through the budget the government had targeted to spend Rs 335.18 billion in the current fiscal 2017-18.
Budget execution in this fiscal has been comparatively better than previous fiscal. The government had spent only around 57.64 per cent of allocated budget in corresponding period of the previous fiscal. However, 68.04 per cent of the appropriated budget has been spent in this fiscal.
To achieve the capital expenditure target, the mid-term review of the budget had slashed the expenditure target by 30 per cent to Rs 234.62 billion compared to eight per cent of the recurrent expenditure. Recurrent expenditure was expected to hover around Rs 738 billion or 91.96 per cent of the allocation. While comparing the appropriated capital expenditure figures of this fiscal the government spent less than 50 per cent in the 11 months of this fiscal.
The government has spent around 77.94 per cent of the appropriated budget and around 85 per cent of revised estimate under the recurrent heading. A total of Rs 626.28 billion has been spent under recurrent budget, which is utilised to provide grants to local bodies and to pay the salaries of civil servants and security forces, among others.
Likewise, government spent 55.33 per cent of appropriated budget and around 71 per cent of revised estimates under financing heading, which is utilised for principal and interest repayment of foreign loans and investment in public enterprises. A total of Rs 77.62 billion was spent under financing in the first 11 months.
Meanwhile, it seems the government is unlikely to meet its revenue collection target in this fiscal, as only 87.33 per cent of the revenue has been collected in review period against annual target of Rs 730.05 billion in this fiscal.
|Heading||Appropriated budget||Revised estimate||Actual spending (till June 19)|
|Recurrent||Rs 803.53bn||Rs 738bn||Rs 626.28bn|
|Capital||Rs 335.18bn||Rs 234.62bn||Rs 194.66bn|
|Financing||Rs 140.29bn||Rs 109.42bn||Rs 77.62bn|
|Total||Rs 1,278.99bn||Rs 1,082.99bn||Rs 870.24bn|
Written by Sandeep
This news first appeared on https://thehimalayantimes.com/business/govt-unlikely-to-spend-even-revised-budget/ under the title “Govt unlikely to spend even revised budget”. Bolchha Nepal is not responsible or affiliated towards the opinion expressed in this news article.