Development Spending Reaches Just 29% in Third Quarter of FY 2024/25

Nepal’s development expenditure has remained dismal, with only 29.2% of the allocated capital budget spent in the first nine months of the fiscal year 2024/25, according to the Financial Comptroller General Office (FCGO).

Out of the total Rs 352.35 billion earmarked for capital (development) expenditure, just Rs 102.9 billion had been utilized as of April 12, 2025.

The slow pace of development spending mirrors a broader trend of weak fiscal performance this year. As of April 13, the government has spent only 53.67% of its total annual budget. The national budget for the current fiscal year stands at Rs 1.8603 trillion, of which Rs 998.5 billion has been spent so far.

Under the recurrent (operational) expenditure heading, the government has spent Rs 678.06 billion, which is 59.45% of the allocated Rs 1.14066 trillion. Similarly, financial management expenses reached 59.23% of the annual allocation, with Rs 217.6 billion spent out of the Rs 367.28 billion budgeted under this category.

Revenue performance has also been underwhelming. The government has collected Rs 821.67 billion in revenue as of April 11—only 57.89% of the annual target of Rs 1.4193 trillion.

Foreign grant inflow has been particularly low, with just Rs 14.26 billion received out of the targeted Rs 52.32 billion for the fiscal year—representing only 27.27% of the expected amount.

The persistent underperformance in both expenditure and revenue collection highlights ongoing challenges in budget execution, public financial management, and foreign aid mobilization—raising concerns over the government’s ability to meet development goals within the remaining months of the fiscal year.