Sudurpashchim Province Has Spent Only 25 Percent of Its Budget So Far, Report Shows

Dhangadhi, 19 Baisakh – The Sudurpashchim Province government has utilized only 25 percent of its budget for the current fiscal year to date. For fiscal year 2082/83, the provincial government allocated a total budget of NPR 33 billion 4 crore 32 lakh 1 thousand 98. Out of the allocated budget, only NPR 8 billion 29 crore 76 lakh 94 thousand has been spent so far, which accounts for 24.82 percent of the total budget, according to the Provincial Controller Office in Dhangadhi. With just about two and a half months remaining in the fiscal year, the government is obligated to spend approximately 75 percent of the allocated budget, meaning it needs to spend more than NPR 25 billion 13 crore.

As in previous years, the province has expended more on recurrent expenditures than capital expenditures. The recurrent budget allocation was NPR 13 billion 58 crore, of which only NPR 4 crore 69 lakh 55 thousand has been spent, showing a utilization rate of 34.56 percent. However, capital expenditure progress lags behind 50 percent. Out of the NPR 19 billion 83 crore allocated for capital expenses, only about 18.16 percent has been spent. According to the Provincial Controller Office data, the government has expended NPR 8 billion 29 crore on capital projects. The low capital spending indicates slow progress in development and construction work throughout the province.

The Ministry of Physical Infrastructure Development, responsible for implementing development projects, holds nearly half of the total budget. The ministry was allocated more than NPR 15 billion 28 crore, but only NPR 3 billion 22 crore has been spent so far, representing just 21 percent utilization. This reflects sluggish progress in roads, bridges, and other physical infrastructure works under the ministry. The Ministry of Social Development has a budget of NPR 8 billion 94 crore and has spent about 32.51 percent of it.

Expenditure progress for the Chief Minister and Council of Ministers’ Office stands at 29 percent, and the Ministry of Economic Affairs has spent 34 percent. Of the NPR 3 billion 63 crore budget transferred to local levels, 33.85 percent has been used. However, the budget allocated for economic diversification and financial arrangements has not been spent yet. Overall, the provincial government’s budget utilization shows far weaker progress in capital expenditure compared to recurrent spending. With less than three months remaining in the fiscal year, the low spending signals weaknesses in project selection, contract procedures, administrative delays, and implementation capacities.

Chief Controller of Accounts at the Provincial Controller Office, Vasudev Joshi, noted that various factors might have affected budget utilization. “Procedural delays are natural since the government included many new projects in the budget. Additionally, the GNJI agitation and subsequent budget cuts may have also hindered expenditure,” Joshi explained. With very little time left before the fiscal year ends, rushing to spend the budget could negatively impact quality work, as has been seen in the past.