Kathmandu, August 17
Overall budget spending declined in the first month of the current government’s fiscal year 2026/27.
According to the Office of the Comptroller General, the government spent Rs 41.89 billion by the end of Shrawan, lower than the same period last fiscal year, when spending stood at Rs 46.30 billion. This year’s Shrawan spending amounts to 1.68% of the annual target, compared to 2.36% progress during the same month last year.
Last year’s first-month spending figure was inflated largely by financial arrangement expenses, which totalled Rs 27.10 billion in that Saun. This year, such spending came to Rs 19.15 billion, funds typically used to repay the principal on public debt.
The government is implementing a total budget of Rs 2,124.34 billion this year. Finance Minister Swarnim Wagle has maintained that no revision to spending will be needed when the mid-year review of this budget takes place.
Capital spending sees modest growth
First-month capital expenditure showed a slight increase compared to the same period last year. Of the total capital budget of Rs 421.10 billion, the government managed to spend just Rs 1.33 billion in Saun, only 0.31% of the target.
Last year’s Shrawan capital spending was even lower, at Rs 726.3 million, or just 0.18% of the target. Looking at the pattern, capital spending continues to lag in the opening months of the fiscal year, even though this is when development work should ideally be picking up pace.
The budget being presented on 15 Jestha is meant to allow 45 days of preparatory work before implementation begins on 1 Shrawan. In practice, however, preparatory work for the new budget doesn’t gain momentum until after Saun begins, meaning spending consistently falls short of targets.
Current expenditure in the first month came to Rs 21.40 billion, or 1.68% of this year’s Rs 1,270 billion target.
Revenue collection rises
Revenue collection in Shrawan rose somewhat compared to last year, reaching Rs 92.22 billion this year against Rs 84.46 billion in the same month last year. This represents 5.84% of the year’s target, compared to 5.71% achieved last year.
The government has set a revenue collection target of Rs 1,480 billion for this year. The first month also saw Rs 24.03 million in grants received. Total government income for Saun came to Rs 93.43 billion, or 5.69% of the annual target.
