The government’s budget execution has been deemed poor as only 2.4 percent of the economic programs announced for fiscal year (FY) 2025/26 were fully implemented in the first three months.
A study by the Confederation of Nepalese Industries (CNI) shows that 51 percent of economic programs recorded no progress, while 46 percent saw only partial implementation.
Key sectors including agriculture, tourism, finance, labour and employment, information technology, and startups reported zero progress. Among 14 agendas related to energy, infrastructure and urban development, only one reached full implementation.
The Ministry of Industry, Commerce and Supplies also performed poorly, executing just one out of 27 assigned programs. Progress on 17 programs under its jurisdiction remained negligible during the review period.
Although the annual budget is unveiled in late May with implementation beginning mid-July, poor utilization and execution have remained persistent challenges year after year.
