Govt Bunching Up Capital Expenditure Toward Last Month of Fiscal Year  

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Govt Bunching Up Capital Expenditure Toward Last Month of Fiscal Year  

June 17: With less than a month for the current fiscal year to come to an end, the government has been able to spend only forty percent of the budget allocated for capital expenditure. Like in the previous fiscal years, the capital budget for the current fiscal year is going to be underspent. 

Though the government had claimed of meeting capital budget spending targets due to various latest measures that it had introduced, a huge portion of the capital budget is going to be unspent in the current fiscal year also. 

Since the new fiscal year begins from July 16, the government has to spend the current budget in less than a month. 
Through the mid term review of the budget, the government had revised its target of capital expenditure to 85.9%. Capital expenditures mostly include the spendings on development projects. 
The government is unlikely to meet even its revised target.  
However, the government is preparing to spend the huge amount of the allocated budget in the month of  Ashad (between mid June and mid July). Bunching up capital spending in the last month of the fiscal year raises concerns of the quality of the development works and other constructions carried out in haste.
Gyanendra Poudel, Spokesperson of the Financial Comptroller General Office, said that a large amount of funds is being released in the last month of the current fiscal year like in the previous years. 

The then Finance Minister Dr. Yubaraj Khatiwada had brought a budget of Rs 1,474.6 billion for the current fiscal year. Through the mid term review report, the government had revised down the budget by Rs 130 billion. 
Jagadish Chandra Pokhrel, former Vice-Chairman of the National Planning Commission , said that the government’s focus on petty politics rather than on delivering services and implementing development projects have led to budget underspending. 
 

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