Govt spends just 28% of capital expenditure

KATHMANDU, APRIL 15 : The government has spent just one/thirds of the capital expenditure till the nine months of this fiscal year. According to the Office of Auditor General, out of the total of such expenditure amounting to 378 billion, only Rs 103.78 billion (27.45 percent) were spent during the review period.

Minister for Finance, Janardan Acharya, is claiming that the remaining chunk i.e 72 percent will be spent in the upcoming three months.  However, officials of the ministers themselves raise their suspicion over this. “It is clear that the prime focus of the government is now on holding the proposed local polls. So, the issue of spending capital expenditure can safely be expected to take a backseat,” they were quoted as saying by media sources.  

The lack of timely investment in development activities has long been a major economic problem. Its negative repercussions can be seen on the liquidity in the banking system, interest rates etc.