April 15, 2022 | Investopaper
The government has spent only 27 percent of the capital expenditure until the nine months of the current fiscal year. According to the Office of the Comptroller and Auditor General, only 26.72 percent of capital expenditure has been spent until the end of Chaitra .
Out of the Rs 378 billion allocated for capital expenditure by the government for the current fiscal year, only Rs 101 billion has been spent so far. In the previous fiscal year, the government had spent 30 percent or Rs 105 billion as capital expenses during the same period.
The major reason for the low capital expenditure is mainly due to the unprepared budget for plans and programs, selection of projects under political pressure, lack of efficiency in government bodies and contractors, lack of skilled and technical manpower, ineffective monitoring mechanism and complicated public procurement process.
The total budget expenditure of the government during the 9 months period is 47.91 percent. Out of the total annual budget of Rs. 1,632.82 billion, Rs. 782 billion has been spent until the end of Chaitra. About 57.8 percent of the budget allocated for current expenditure has been spent. According to the Office of the Comptroller and Auditor General, Rs. 615 billion has been spent so far as current expenditure out of the allocated budget of Rs. 1,065.29 billion.
During the same period, the government’s revenue collection is 65 percent of the annual target. The government has raised Rs. 768 billion towards internal revenue. The revenue collection target is Rs. 1,180 for the current fiscal year.