Country’s capital expenditure in the last fiscal year stood at Rs 77.67 billion or 66 percent of the targeted Rs 116 billion.
Total capital expenditure in Fiscal Year 2014/15, however, was up by 26.6 percent compared to 2013/14, according to the Macroeconomic Situation Report of 2014/15 published by the Nepal Rastra Bank on Friday.
Lack of project readiness and slow implementation badly affected government’s development spending in 2014/15.
Financial expenditure, however, increased by a whopping 57 percent to Rs 93.30 billion in the review year. In 2013/14, financial expenditure had increased by only 14.1 percent.
Increase in share and loan investment in hydropower projects and substantial repayment of domestic debt by the government contributed to higher expenditure performance in the review year, according to the report.
Recurrent expenditure increased by 10.9 percent to Rs. 328.98 billion compared to a growth of 21.7 percent in the previous fiscal year. The expenditure is 82.5 percent of the annual budget estimate.
Similarly, government’s expenditure increased by 19.8 percent to Rs. 499.96 billion in 2014/15 compared to a rise of 16.3 percent to Rs. 417.47 billion in 2013/14. Total expenditure increased in 2014/15 due to rise in recurrent and capital expenditure, according to the report.