Bagmati Province Records Only 25% Budget Expenditure in Eight Months

The financial performance of Bagmati Province has fallen short this fiscal year, with the government managing to spend only 25.62% of its total budget from mid-July to mid-March (Shrawan to Falgun) of the fiscal year 2081/82.

According to Indaraj Sanyal, Information Officer at the Ministry of Economic Affairs and Planning, the provincial government had allocated a budget of Rs 64.05 billion, but only Rs 10.05 billion has been utilized so far. The expenditure breakdown includes 35.22% for current expenses and a meager 19.94% for capital expenditures.

Among the government bodies, the Office of the Provincial Chief Attorney reported the highest spending at 47.69%, followed by the Provincial Assembly Secretariat at 38.22%. On the other hand, the Ministry of Tourism, Industry, and Cooperatives recorded the lowest expenditure, utilizing just 9.79% of its allocated budget.

Revenue collection has also been on a downward trend. In the first eight months of this fiscal year, the province collected only 38.13% of its targeted revenue. The government had set a target of Rs 29.55 billion in revenue collection but managed to gather just Rs 13.90 billion — a mere 47.03% of the target.

Similarly, the province aimed to receive Rs 15.57 billion in grants from the federal government but secured only 52.58% of the target, amounting to Rs 8.18 billion. Additionally, the province targeted Rs 4.53 billion from internal sources but collected just 52.41% (Rs 2.37 billion) during the same period.

Bagmati Province has struggled with declining revenue collection over the past few fiscal years. In the previous fiscal year 2080/81, the province’s revenue collection fell short by Rs 9.31 billion, achieving only Rs 39.22 billion against the targeted Rs 48.25 billion.

Similarly, in the fiscal year 2079/80, the province collected 17% less revenue than its estimated target.

Hari Prasad Upadhyay, Chief of the Bagmati Provincial Treasury and Controller of Accounts Office, cited the reduction in revenue from sources like value-added tax, income tax, natural resource extraction fees, and land revenue as key reasons for the decline. Additionally, the federal government’s decision to withdraw some projects due to the ongoing economic recession has further affected the province’s revenue generation.

The significant shortfall in both expenditure and revenue collection highlights critical issues in the province’s fiscal management. As Bagmati Province continues to grapple with these financial challenges, efforts to streamline budget utilization and improve revenue collection are crucial for economic stability.