The government spent only 6.91 percent of the capital expenses in the first four months of the current fiscal year.
According to the Financial Comptroller General Office (FCGO), the government has so far spent only Rs 26.29 billion out of Rs 380.38 billion in capital expenditure allocated for the current fiscal year (FY 2022/23). It shows the dismal performance of the government this year too when it comes to utilizing the funds meant for development projects.
Every year, the government is found speeding up the expenses under this heading at the eleventh hour during the fiscal year end. In the fiscal year 2021/22, the government spent Rs 78.40 billion just in the last month between mid-June and mid-July. The amount was 36.23 percent of the amount allocated for the whole year.
Last year, the government allocated Rs 350 billion in capital expenditure, while the expense stood at only Rs 216.37 billion. Overall, it spent only 62 percent of the total amount.
The slow pace of capital expenditure in the review period shows that the government has failed to improve its spending capacity this year as well. According to analysts, the inability will not only degrade the quality of development works, but will also hit the employment opportunities and liquidity position in the banking system.
Overall, the government spent 19.57 percent of the total budget during the review period. Of the allocated amount of Rs 1.793 trillion, the total spending was just Rs 350.98 billion.
Likewise, the revenue collection stood at 19.11 percent of the target of Rs 1.403 trillion. During mid-July and mid-November, the tax revenue collection was 18.97 percent of the target of Rs 1.295 trillion.
