Provincial budget expenditure disappointing

By Our Correspondent,Butwal, Mar. 23: The budget expenditure of Lumbini Province government has been sluggish. By mid-March eight months into the fiscal year 2025/26 the provincial government had spent only 27.63 per cent of its budget.

Now, the government faces the challenge of spending nearly 72 per cent of the remaining budget in the next four months.

In the first eight months of the fiscal year, the government had spent a total of Rs. 10,750,173,140 (27.63 per cent) of the total budget, including both current and capital expenditures.

According to the Lumbini Province Accounts Control Office in Butwal, by mid-March 2026 25.40 per cent of the capital expenditure and 31.01 per cent of the recurrent expenditure were made, resulting in a total of 27.63 per cent of the budget being utilised.

Yubaraj Kandel, an economist, explained that the delay in the budget expenditure was due to factors such as the Gen Z movement in September, government changes, and delays in the initiation of project tenders. 

He pointed out that this causes a rush of activities towards the end of the fiscal year, especially in the month of Ashar (mid-June to mid-July), which often results in substandard work.

The Lumbini provincial government had allocated a total budget of Rs. 38.81 billion for the fiscal year 2025/26, with Rs. 23.47 billion allocated for capital expenditure and NPR 15.44 billion for recurrent expenditure.

Among the various ministries, the Ministry of Health has spent the most of its allocated budget, while the Ministry of Internal Affairs and Law has spent the least. 

The Ministry of Health spent 48.63 per cent of its total allocated budget, whereas the Ministry of Internal Affairs and Law spent only 7.68 per cent of its budget, which is 13.54% for recurrent expenditure and 0.59 per cent for capital expenditure.

The Office of the Chief Minister and Council of Ministers spent 20.97 per cent of its budget, according to the Accounts Control Office.

Similarly, the Ministry of Finance and Planning spent 21.57 per cent, the Ministry of Energy, Water Resources and Irrigation spent 23.03 per cent, and the Ministry of Industry, Tourism, and Transport spent 18.29 per cent of its budget.

Other ministries, such as the Ministry of Agriculture and Land Management has spent 25.52 per cent, the Ministry of Forests and Environment 27.51 per cent, the Ministry of Physical Infrastructure Development with 28.18 per cent, the Ministry of Youth and Sports with 7.95 per cent, the Ministry of Urban Development and Drinking Water 24.17 per cent, and the Ministry of Social Development 14.08 per cent, also showed varying expenditure levels.