KATHMANDU: The government’s capital expenditure stands at only 44.67 percent of the allocated budget in the first 11 months of the current fiscal year (FY 2080/81). Meanwhile, the government has spent 72.6 percent of the budget on current expenses and 72.7 percent on financial management, according to the Financial Comptroller General Office (FCGO).

For the current year, the government had proposed a budget of Rs 1751.31 billion. Of this amount, Rs 1141.78 billion was allocated for current expenses, out of which Rs 822.8 billion has been spent by mid-June.

The capital budget was set at Rs 302.74 billion, with only Rs 134.97 billion (44.68 percent) spent so far. Under the financial management heading, 72.7 percent of the allocated budget of Rs 307.45 billion has been spent, totaling Rs 223.5 billion. This budget is primarily used to pay interest on government debt.

According to FCGO statistics, government revenue collection up to this period is only 64.15 percent of the annual target. The government had aimed to collect Rs 1472.48 billion in revenue for the current fiscal year, with Rs 1305.49 billion expected from tax revenue. So far, only 63.5 percent (Rs 829.3 billion) of the tax revenue target has been achieved.

In terms of non-tax revenue, the government had set a target of Rs 107.62 billion, but has collected only Rs 90 billion, which is 77 percent of the target. Additionally, the government had set the aim to collect Rs 49.94 billion in foreign grants for the fiscal year, but has only received 5.52 percent of the target, amounting to Rs 2.758 billion.

Critics argue that the public finance management sector is weak due to the failure to improve the country's economy. The low state of capital expenditure, increasing current and financial management expenses, inability to meet revenue targets, and failure to collect foreign grants are cited as major issues.