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    • {"id":12475,"date":"2018-10-22T14:00:17","date_gmt":"2018-10-22T08:30:17","guid":{"rendered":"https:\/\/www.nepalisansar.com\/?p=12475"},"modified":"2018-10-30T15:02:16","modified_gmt":"2018-10-30T09:32:16","slug":"nepals-capital-expenditure-witnesses-slump","status":"publish","type":"post","link":"https:\/\/www.nepalisansar.com\/news\/nepals-capital-expenditure-witnesses-slump\/","title":{"rendered":"Nepal’s Capital Expenditure Witnesses Slump"},"content":{"rendered":"

    In another challenging situation for Nepal, the Government failed to increase its capital expenditure despite extension of publication date for the budget statement for this year.<\/p>\n

    Three years ago, the budget announcement date was moved from May-end to mid-July giving the government more time for budget endorsement and increasing capital expenditure. <\/p>\n

    However, this move has failed with the government unable to bring the expected rise in capital expenditure.<\/p>\n

    Nepal\u2019s Capital Expenditure<\/strong><\/h4>\n

    According to Nepal Finance Ministry (MoF) records, the country\u2019s capital expenditure in FY 2015-16, 2016-17 & FY 2017-18 was 59, 66 and 84 percent respectively.<\/p>\n

    Despite this increase over the last three years, Nepal\u2019s FY 2015-18 capital expenditure remained at an average 69 percent (period when budget announcement date was extended). Before this period, the country recorded an average capital expenditure of 77 percent.<\/p>\n

    Reasons for Failure<\/strong><\/h4>\n

    As per the Finance Ministry, inadequate ownership in implementation was responsible for slow capital spending.<\/p>\n

    \u201cBesides, problems seen in the disbursement process are also among the main causes behind the low capital expenditure,\u201d the Ministry<\/span> stated in a report submitted to the Parliamentary Finance Committee.<\/p><\/blockquote>\n

    Revenue Secretary Shishir Kumar Dhungana identified delays in land acquisition<\/em> and delegation of authority<\/em> as key reasons for failure in proper implementation of the annual budget<\/a> despite early announcement.<\/p>\n

    \u201cLack of proper preparation of the envisioned projects and government agencies demanding inflated budgets not based on actual need and capacity are among the underlying problems,\u201d said Dhungana<\/span>.<\/p><\/blockquote>\n

    Speaking about Nepal\u2019s capital expenditure this year Dhungana says,<\/p>\n

    \u201cAlthough authority has been delegated to local governments to make decisions on a number of development projects, the federal government<\/span> is yet to come up with clear demarcation of the areas of expenditure.\u201d<\/p><\/blockquote>\n

    The Solution<\/strong><\/h4>\n

    Despite several attempts in the past including a \u2018time-bound action plan\u2019 implemented by the MoF, the country has been unable to enhance its slow capital spending.<\/p>\n

    Continuing its efforts and coming up with a different solution this time, the Nepal Government has formed a five-member \u2018Public Expenditure Review Committee\u2019 under the leadership of Dilli Raj Khanal.<\/p>\n

    Additionally, it has stipulated a Treasury Single Account system to enhance the budget disbursement pattern.<\/p>\n

    The Parliamentary Committee has also given the government a budget spending time frame of 60 percent in the second quarter, 30 percent by mid-May and the remaining 10 percent in the last month of the fiscal year.<\/p>\n","protected":false},"excerpt":{"rendered":"

    In another challenging situation for Nepal, the Government failed to increase its capital expenditure despite extension…<\/span><\/p>\n

    Read more<\/a><\/div>\n

    <\/p>\n","protected":false},"author":761,"featured_media":12477,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7042,3],"tags":[9724,9723,7822,1076,98,7323,7583,2994,8787,177,9725],"yoast_head":"\nNepal's Capital Expenditure Witnesses Slump - Nepali Sansar<\/title>\n<meta name=\"description\" content=\"The Government failed to increase Nepal's capital expenditure despite increment of publication date; mandated in the budget statement\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.nepalisansar.com\/news\/nepals-capital-expenditure-witnesses-slump\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Nepal's Capital Expenditure Witnesses Slump - Nepali Sansar\" \/>\n<meta property=\"og:description\" content=\"The Government failed to increase Nepal's capital expenditure despite increment of publication date; mandated in the budget statement\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.nepalisansar.com\/news\/nepals-capital-expenditure-witnesses-slump\/\" \/>\n<meta property=\"og:site_name\" content=\"Nepali Sansar\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/NepaliSansarNews\/\" \/>\n<meta property=\"article:published_time\" content=\"2018-10-22T08:30:17+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-10-30T09:32:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.nepalisansar.com\/wp-content\/uploads\/2018\/10\/Capex.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nepali Sansar Bureau\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@nepalisansar4u\" \/>\n<meta name=\"twitter:site\" content=\"@nepalisansar4u\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nepali Sansar Bureau\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.nepalisansar.com\/news\/nepals-capital-expenditure-witnesses-slump\/\",\"url\":\"https:\/\/www.nepalisansar.com\/news\/nepals-capital-expenditure-witnesses-slump\/\",\"name\":\"Nepal's Capital Expenditure Witnesses Slump - Nepali Sansar\",\"isPartOf\":{\"@id\":\"https:\/\/www.nepalisansar.com\/#website\"},\"datePublished\":\"2018-10-22T08:30:17+00:00\",\"dateModified\":\"2018-10-30T09:32:16+00:00\",\"author\":{\"@id\":\"https:\/\/www.nepalisansar.com\/#\/schema\/person\/0b1cc737a429a92681b510a50f2d99e4\"},\"description\":\"The Government failed to increase Nepal's capital expenditure despite increment of publication date; 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