Bagmati Province spends only 12% budget in first five months of fiscal year

By Our Correspondent,Hetaunda, Dec. 27: Bagmati Province has spent less than 12 per cent of its total budget for the current fiscal year 2024/25 in the first five months. Despite pledges to enhance budget implementation this year, the provincial government failed to effectively execute its financial plan.

Out of the Rs. 64.54 billion allocated for various programmes and projects for this year, only Rs. 7.37 billion (11.42 per cent) was utilised by mid-December, according to the Ministry of Economic Affairs and Planning of Bagmati.

In the initial four months (from mid-July to mid-November), only 7.93 per cent (Rs. 5.11 billion) of the budget had been spent. Of the total allocation, Rs. 26.10 billion was for recurrent expenses, Rs. 36.93 billion for capital expenditure, and Rs. 1.50 billion for financial management. 

Capital expenditure remains notably low compared to recurrent spending, according to the ministry's financial progress updates.

Historically, Bagmati Province has shown a pattern of slow spending until April, with more than half of the budget often utilised in the final three months of the fiscal year (mid-April to mid-July).

Information Officer of the Ministry, Suraj Poudel, said that recurrent spending is generally higher in the first quarter, while capital expenditure tends to pick up later. "Delays in project implementation due to issues such as project location, naming conflicts, and revisions have further contributed to low spending in the first five months," he said. 

As of mid-December, 20.66 per cent (Rs. 5.39 billion) of the recurrent budget and only 5.36 per cent (Rs. 1.97 billion) of the capital budget of Bagmati has been spent. Delays in approving multi-year project guidelines and bidding processes were cited as additional behind the low expenditure. However, Poudel is hopeful that spending would increase in the second quarter.

The Ministry of Physical Infrastructure Development, which received the highest budget allocation of Rs. 22.64 billion is also struggling to make significant progress. 

It spent only Rs. 1.50 billion (6.64 per cent of the total allocation) in the first five months. 

Likewise, among provincial entities, the Provincial Legislature and the Office of the Attorney General reported the highest spending percentages by mid-December.