Nepal’s Half-Yearly Budget Review for the fiscal year 2081/82 (2024/25) highlights modest fiscal progress. According to the Office of the Comptroller General, the government achieved 39% of its income target and 35% of its planned expenditures by mid-January.
Key Highlights of the Half-Yearly Budget Review
1. Total Government Spending:
Rs 667.62 billion was spent, meeting just 35.89% of the Rs 1,860.33 billion annual budget.
2. Revenue Performance:
- Total Revenue: Rs 574.77 billion (39.06% of the Rs 1,471.63 billion target)
- Tax Revenue: Rs 489.40 billion (38.11%)
- Non-Tax Revenue: Rs 70.28 billion (51.97%)
- Foreign Grants: Rs 7.37 billion (14.09% of the Rs 52.33 billion target)
3. Capital Expenditures:
Only Rs 56.94 billion has been spent, a mere 16.16% of the capital allocation (Rs 352.35 billion).
4. Fiscal Management Expenses:
Rs 158.66 billion spent (43.2% of Rs 367.28 billion).
Challenges and Observations
- Low capital spending reflects delays in development project execution.
- Foreign grant mobilization remains extremely low.
- Though non-tax revenue is progressing well, tax collection still lags.
Conclusion: What the Half-Yearly Budget Review Suggests
The mid-year budget analysis shows that while income is on track, capital expenditure is significantly lacking. Addressing delays in public investment and better grant utilization are essential for achieving annual goals.
