Print Edition - 2014-07-15 | MONEY
Rs 67 billion to go unspent this FY
Jul 14, 2014-
The government will not be able to spend Rs 67 billion this fiscal year, with the expenditure pattern remaining poor. According to the budget document for fiscal year 2014-15, the government has estimated expenditure of Rs 449.85 billion against the budget size of Rs 517.24 billion. The budget allocated for recurrent expenditure, capital and financing will not be spent fully.
According to the government’s estimate, it will be unable to spend Rs 21 billion in capital budget and Rs 37 billion in recurrent budget. Budget under the financing head, which basically includes resources the government provides to public enterprises for capital investment, will miss the expenditure target by Rs 9.38 billion.
Finance Secretary Yubaraj Bhusal said the situation reflects the government’s poor spending capacity. “Particularly, poor capital expenditure has lowered the overall expenditure,” he said. “Even under the recurrent expenditure head, a huge portion should have been spent for capital generating purposes, but which has not been done.”
Grants the government provides to local bodies and resources going to institutions formed under the Development Committee Act, such as Melamchi Water Supply Development Board, also fall under the recurrent expenditure head. Lately, the government expenditure has been around 80 percent.
The government has also failed to achieve the foreign aid target. According to the budget document, the government has estimated to receive Rs 47.31 billion in grant against the target of Rs 69.54 billion. Foreign loans are expected to be around Rs 23.69 billion against the budgetary target of Rs 43.7 billion.
Bhusal attributed said the government missed the foreign aid target due to its failure to spend the budget under the heading and failure to take timely initiatives to get reimbursement of spent resources from donors.
Based on poor expenditure pattern of foreign aid during the first half of the fiscal year, the Mid-term Review of the budget has estimated only 77.14 percent of grants and 49.18 percent of loans will be spent this fiscal. Over the last six years, only 66.91 percent of foreign grant and 49.18 percent of foreign loans have been spent on an average, according to the review.
Expenditure Pattern (FY 2013-14)
Heading Target Achievement
Capital expenditure Rs 85.10b Rs 63.87b
Recurrent Rs 353.42b Rs 316.16b
Financing Rs 78.72b Rs 69.34b
Foreign aid received
Grants Rs 69.54b Rs 47.31b
Loans Rs 43.7b Rs 23.69b
Published: 15-07-2014 09:18