Capital expenditure contracts while finance expense goes up

By TRN Online, Kathmandu, Jan 30: Capital expenditure contracted as of the 2nd quarter of the current fiscal year (FY).  According to the 2nd quarter report of the current fiscal year (FY) published by the Ministry of Finance, the capital expenditure is contracted by 22 per cent compared to the same period of the previous FY.

In the 2nd quarter of the current FY, the capital expenditure amounted to Rs 47.54 billion which is lower than that of the same period of the previous FY of Rs 58.18 billion.

Meanwhile, current expenditure and finance expenses went up in the 2nd quarter. 

The report showed that the government’s total spending in the current FY is higher than the previous FY. In the current FY, total expenditure thus far is 46.06 per cent which is higher than previous 10.75 per cent. In the current FY, the recurrent expenditure is 40.82 percent, in the same period of the previous FY, it was recorded 37.47 per cent. Similarly, the current finance expenses is 99.93 per cent which is higher than 46.64 per cent of the same period of the previous FY.

The total expenditure in the 2nd quarter of the current FY accounted for Rs 904.64 billion in which current expenditure amounted to Rs 482.11 billion, capital expenditure amounted to Rs 47.54 billion and the financial expense is Rs 374.99 billion.