Lumbini spends 59% of budget allocations in 11 months

By Our Correspondent,Bhairahawa, July 2: The Lumbini Provincial government has utilised only 59 per cent of its allocated capital expenditure in the first 11 months of the current fiscal year 2024/25, raising concerns over the province’s budget implementation efficiency.

According to the Provincial Treasury Controller Office, Lumbini Province, around 59.11 per cent of total budget allocation under the heading of capital expenditure and 56.78 per cent under the heading of recurrent expenditure was spent during the first 11 months of the current fiscal year.

Of Rs. 24.58 billion allocated under capital expenditure, only Rs. 14.53 billion has been spent in 11 months of the current fiscal year, from July 16, 2024, to June 14, 2025.

Likewise, around Rs. 8.16 billion out of the total allocation of Rs. 14.38 billion under the recurrent expenditure has been spent during the review period.

The government has spent only 58.25 per cent of its annual budget by mid-June this fiscal year.

The provincial government has presented a budget of Rs. 38.97 billion for the current fiscal year.

The Ministry of Health is at the forefront for spending and the Office of the Chief Minister and Council of Ministers is the last of all. 

The Ministry of Physical Infrastructure Development has spent the most budget.

According to the Provincial Treasury Controller Office, Ministry of Health spent 87.12 per cent capital expenditure while Chief Minister's Office only 14.66 per cent.

During the first 11 months of the current fiscal year, the Ministry of Physical Infrastructure Development has spent a budget of Rs. 5.68 billion (the highest in terms of amount).

Similarly, the Ministry of Health has spent Rs. 2.24 billion under the heading of capital expenditure.

The Ministry of Urban Development and Water Supply has spent 67.72 per cent (Rs. 3.48 billion) of the capital budget.

Similarly, the Ministry of Economic Affairs has spent 64.44 per cent (Rs. 3.22 million) under the capital expenditure. Despite the small budget, the result of this ministry in terms of capital expenditure percentage is good.

The Office of the Chief Minister and Council of Ministers has spent Rs. 5.74 million under the capital expenditure while the Ministry of Women, Children and Senior Citizens has spent Rs 1.7 million (14.87 per cent) during the review period.

The capital budget expenditure of the Ministry of Energy, Water Resources and Irrigation is 60.80 per cent (Rs. 1.81 billion) during the first 11 months of the current fiscal year, according to the Provincial Treasury Controller Office.

Likewise, the capital expenditure of the Ministry of Agriculture and Land Management stood at Rs. 51.7 million (53.26 per cent), Ministry of Social Development at Rs. 5.43 million (47.25 per cent), and the Ministry of Internal Affairs, Law and Cooperatives at Rs. 39 million (22 per cent).

Spokesperson of Lumbini Provincial government Dinesh Panthi expressed confidence that the total expenditure will reach above 70 per cent in the remaining one month of the fiscal year.

He claimed that the expenditure progress will be achieved as per the target set by the government as the payment process for the work completed under various ministries is ongoing.