Nepal’s capital expenditure has remained critically low even after nearly six months of the current fiscal year. By January 10, the government spent only NPR 43.6 billion out of a capital budget of over NPR 400 billion just 10.69%. This is lower than the same period last year, when spending reached NPR 53.58 billion (15.21%), showing a further decline in development budget utilization. The Ministry of Finance blamed disruptions caused by the Gen-Z movement, which affected administrative operations for around one and a half months. Officials claim efforts are underway to support implementing agencies and improve spending in the coming months. Contractors also highlighted challenges, stating that poorly planned and unproductive projects from previous years have slowed progress. They urged the government to terminate unnecessary projects through legal procedures and ensure accountability from both government offices and contractors to improve development performance.


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Current Issue

02-2026

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