Madhesh Province spends only 9% of budget in nine months

Janakpurdham — The Madhesh Province government has spent only 9.04 percent of its budget in the first nine months of the current fiscal year 2082/83.

For the ongoing fiscal year, a total of Rs 30.86 billion was allocated under capital expenditure. Out of this, only Rs 2.78 billion has been spent so far.

According to Nirendra Lal Karn, Information Officer at the Provincial Accounts Controller Office, the Ministry of Finance has recorded the highest spending in percentage terms, while the Ministry of Sports and Social Welfare has spent the least.

The Ministry of Finance has utilized 19.08 percent of its allocated capital budget, whereas the Ministry of Sports and Social Welfare has spent just 0.14 percent.

The largest allocation was made to the Ministry of Physical Infrastructure Development, which received Rs 16.58 billion in capital budget. Of this, 13.66 percent—amounting to Rs 2.26 billion—has been spent.

Similarly, the Ministry of Energy, Irrigation and Water Supply, which was allocated Rs 3.87 billion, has spent only 4.15 percent (Rs 160.7 million).

The Ministry of Industry, Commerce and Tourism has spent 1.15 percent (Rs 30.4 million) of its Rs 2.65 billion allocation, while the Ministry of Health and Population has spent just 2.73 percent (Rs 59.9 million) of its Rs 2.19 billion budget.

Other ministries’ capital spending includes:

• Education and Culture: 3.36 percent
• Sports and Social Welfare: 0.14 percent
• Forest and Environment: 10.90 percent
• Land Management, Agriculture and Cooperatives: 4.91 percent
• Home, Communication and Law: 10.07 percent
• Labor and Transport: 7.44 percent
• Office of the Chief Minister and Council of Ministers: 6.85 percent

Among provincial bodies, the Provincial Assembly has spent 15.20 percent of its capital budget, the Public Service Commission 1.73 percent, the Office of the Chief Attorney 58.57 percent, while the Provincial Policy and Planning Commission has spent nothing.

Former Finance Minister Sunil Yadav had presented a total budget of Rs 46.98 billion for the fiscal year, allocating Rs 30.86 billion for capital expenditure and Rs 16.12 billion for recurrent expenditure.

However, after nine months, only 14.94 percent of the total budget has been spent—9.04 percent in capital and 26.23 percent in recurrent expenditure.

Pressure to spend nearly Rs 40 billion in 87 days

With only three months remaining in the fiscal year, the province now faces pressure to spend 85.6 percent of the remaining budget—around Rs 39.96 billion—within just 87 days (by mid-July).

As in previous years, there is a high likelihood of last-minute spending toward the end of the fiscal cycle.

The provincial government is also preparing to cut more than Rs 15 billion worth of planned projects and expenditures. Projects already approved and contracted will continue, while others may be scrapped.

The Ministry of Finance stated that the cuts are necessary due to lower-than-expected revenue collection, limited internal resources, and a federal government decision to reduce budgets by 20 percent by eliminating non-essential programs.

In the previous fiscal year 2081/82, Madhesh Province had spent 71.48 percent of its total allocated budget—the highest expenditure recorded so far in a single fiscal year.