Budget mid-term review: capital spending hits 31%, the highest in six years
Faster procurement and new e-bidding rules pushed development spending ahead of last year's pace. Economists say the second half will be the real test.
The Ministry of Finance on Wednesday said capital expenditure reached 31 percent of the annual allocation by mid-September. That's the highest mid-term figure since fiscal year 2077/78.
Officials credited a new e-bidding rule that cut average contract approval time from 74 to 41 days, and an earlier release of budget authority to provinces.
“The pace is encouraging, but most spending in Nepal still happens in the last trimester. That pattern has not broken yet.” — an economist at Tribhuvan University
Road, hydropower and irrigation projects took the biggest share, while health and education capital budgets lagged at under 20 percent.
The review also revised revenue targets down by 3 percent, citing slower imports. The ministry said it would not cut development budgets to cover the gap.