The budget expenditure of Nepal’s provinces in the first six months of the current fiscal year 2024/25 has been dismal, with an overall spending rate of just 16.18 percent of the annual target, according to the government’s half-yearly review report.
Provincial governments had announced a combined budget of Rs 278.69 billion for the fiscal year, but as of January 13, 2025, only Rs 45.9 billion has been spent.
Madhesh Province had announced a budget of Rs 43.89 billion but has spent only Rs 2.46 billion, which is just 5.61 percent of its total budget. Sudurpaschim Province, which had allocated Rs 31.62 billion, has spent Rs 4.68 billion, accounting for 14.82 percent of its total budget. Karnali Province recorded an expenditure of Rs 4.75 billion out of its Rs 31.41 billion budget, marking a spending rate of 15.14 percent.
Lumbini Province had set an annual budget of Rs 38.97 billion and spent Rs 7.53 billion in the first six months, achieving 19.36 percent of its target. Gandaki Province also recorded a spending rate of 19.36 percent, having spent Rs 6.38 billion out of its total budget of Rs 32.97 billion.
Bagmati Province had introduced the highest provincial budget at Rs 64.54 billion but managed to spend only Rs 10.29 billion, which is 16.27 percent of the total. Koshi Province recorded the highest expenditure percentage among all provinces, spending Rs 8.77 billion out of its Rs 35.27 billion budget, achieving a spending rate of 24.85 percent.
The low spending levels raise concerns over budget utilization efficiency and the ability of provincial governments to implement planned development projects within the fiscal year.
