The government is sitting on a cash pile of Rs 86 billion as of mid-April, thanks to slow development spending and rising revenue collection.
This is the highest ever amount piled up in the government coffers, according to the Finance Ministry.
Nepal is the only country in South Asia witnessing a budget surplus, thanks to its failure to spend for development projects, a recent World Bank report said.
Finance Secretary Yubaraj Bhusal said such a high amount in the government’s treasury is a worrying factor at a time when the country badly needs development expenditure.
Bhusal, who assumed the role of secretary at the Finance Secretary from Thursday, said he would focus on transferring resources from projects that have failed to spend to those that are performing well. “National Pride Projects will be given the first priority for resources transfer, while Priority 1 projects will be given second priority,” Bhusal told the post.
As of April 10, the government has been able to spend just 46 percent of total allocated budget, while capital expenditure stands at just Rs 25.55 billion, 30 percent of the allocation.
However, Rajan Khanal, joint secretary at the ministry, said the reserves in the government’s coffers grew also because of high revenue collection and an influx of foreign aid at the end of the third quarter. “In the third quarter, taxpayers pay tax installments and revenue collection peaks,” said Khanal.
According to Nepal Rastra Bank statistics, the government received foreign aid worth Rs 40.86 billion as of mid-March, up from Rs 15.61 billion during the same period last fiscal year.
As the government coffers swell, the banking sector is also facing a surplus liquidity of around Rs 50 billion. “Had the amount gone to public and private sectors, it would have boosted economic activities, contributing to the economic growth,” said Khanal.
Source
This is the highest ever amount piled up in the government coffers, according to the Finance Ministry.
Nepal is the only country in South Asia witnessing a budget surplus, thanks to its failure to spend for development projects, a recent World Bank report said.
Finance Secretary Yubaraj Bhusal said such a high amount in the government’s treasury is a worrying factor at a time when the country badly needs development expenditure.
Bhusal, who assumed the role of secretary at the Finance Secretary from Thursday, said he would focus on transferring resources from projects that have failed to spend to those that are performing well. “National Pride Projects will be given the first priority for resources transfer, while Priority 1 projects will be given second priority,” Bhusal told the post.
As of April 10, the government has been able to spend just 46 percent of total allocated budget, while capital expenditure stands at just Rs 25.55 billion, 30 percent of the allocation.
However, Rajan Khanal, joint secretary at the ministry, said the reserves in the government’s coffers grew also because of high revenue collection and an influx of foreign aid at the end of the third quarter. “In the third quarter, taxpayers pay tax installments and revenue collection peaks,” said Khanal.
According to Nepal Rastra Bank statistics, the government received foreign aid worth Rs 40.86 billion as of mid-March, up from Rs 15.61 billion during the same period last fiscal year.
As the government coffers swell, the banking sector is also facing a surplus liquidity of around Rs 50 billion. “Had the amount gone to public and private sectors, it would have boosted economic activities, contributing to the economic growth,” said Khanal.
Source
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