KATHMANDU: The Karnali provincial government continues to face challenges in budget implementation, with a significant portion of spending concentrated in the final quarter of the fiscal year.
Data for the first month of the current fiscal year 2026/27 shows that only 0.106 percent of the total budget, or Rs 37.69 million, has been spent.
A study by the Riti Foundation indicates that, on average, 37.22 percent of the recurrent budget and 38.16 percent of the capital budget are spent in the last three months of the fiscal year.
Statistics from the past five years consistently show that a large share of the budget is utilized between April and June. In the last fiscal year 2025/26, 22.80 percent of the total capital budget was spent in the month of Asar alone.
Nine years since its establishment, the provincial government has struggled to improve its capacity for timely budget execution.
Despite implementing eight annual policies and programs, the government has failed to address weaknesses in development planning, transparency, and expenditure management. Analysis of ministerial spending reveals significant imbalances, with even high-performing agencies deferring a large portion of their budget to the final quarter.
For the current fiscal year, the provincial government has introduced a total budget of Rs 35.39 billion. Of this, Rs 20.74 billion is allocated for capital expenditure.
In the first month, capital expenditure stood at Rs 3.34 million, while recurrent expenditure was Rs 4.25 million.
While administrative spending remains consistent, the pace of development budget utilization remains sluggish.
