Kathmandu. More than half of the current fiscal year has passed, but the expenditure situation of the provincial governments is dismal.

According to the half-yearly evaluation report of the budget for the fiscal year 2082/83 released by the Ministry of Finance, the expenditure of the provinces is very weak. Of the total budget of the seven provinces for the current fiscal year of Rs 287.70 billion, only 14.16 per cent has been spent till mid-January.

According to the report, only 21.43 per cent of the capital expenditure and 9.33 per cent of the capital expenditure of the provinces has been spent. According to the report, out of Rs 975 million allocated for financial management in the province, zero expenditure was seen till mid-January.

Madhes Province has the lowest capital expenditure of 3.36 per cent while Lumbini Province has the highest capital expenditure of 18.04 per cent. The poor state of capital expenditure, which is directly linked to development and structural transformation, has also raised questions about the budget implementation capacity of the provinces.

At the provincial level, Bagmati Province is comparatively ahead in terms of expenditure. The Bagmati Province has spent 14.20 per cent of the total budget till mid-January of the Rs 67.47 billion allocated for the current fiscal year. The province has spent 22.48 per cent of current expenditure and 8.99 per cent of capital expenditure.

Madhes Province is the weakest performer. Madhes has spent only 7.71 per cent of the total budget. The province has been able to spend only Rs 3.62 billion for the current fiscal year till mid-January with a budget of Rs 46.98 billion. Madhes’ current expenditure during this period stood at 15.58 per cent and capital expenditure was 3.36 per cent.

Koshi Province has spent 16.84 per cent of the total budget. Koshi has 23.23 per cent current expenditure, 9.96 per cent capital expenditure and zero financial management expenditure. The province has allocated Rs 100 million for the current fiscal year but it has not been able to spend any amount so far.

The situation in Gandaki and Lumbini provinces is also not very encouraging. Gandaki Province has spent 16.68 per cent of the total annual budget while Lumbini has spent 20.45 per cent. Capital expenditure in both provinces stood at 14.13 per cent and 18.04 per cent, respectively.

The spending capacity of Karnali and Sudurpaschim provinces, which are considered to be backward in terms of development, has been weak till mid-January. Out of the total budget of Rs 32.99 billion for the current fiscal year, only Rs 4.53 billion or 13.74 per cent of the annual allocation has been spent so far.

Karnali’s current expenditure has shrunk to 23.83 per cent, capital expenditure to 7.90 per cent and financial management to zero. The province has allocated Rs 615 million for the current fiscal year under the heading of financial management, but no amount has been spent so far.

Far-West’s expenditure is 10.94 percent. The province unveiled a budget of Rs 33.47 billion for the current fiscal year and has been able to spend only Rs 3.66 billion till mid-January. Sudurpaschim Province has achieved 19.47 per cent current expenditure and 5.08 per cent capital expenditure so far.