BIRATNAGAR: The Koshi province government has failed to spend its available budget, leading to a surplus of nearly Rs 8 billion in its consolidated fund for the fiscal year 2025/26.
Provincial Comptroller Damodar Khatri stated that the final figures are still being reconciled as data from Panchthar is pending. He noted that the final surplus is expected to range between Rs 7 billion and Rs 8 billion.
During the budget speech on July 16, Minister for Economic Affairs and Planning Bidur Kumar Lingthep had estimated a cash reserve of Rs 5 billion.
However, the actual surplus has exceeded this projection. While the government had projected an income of Rs 29.32 billion, it actually collected Rs 30.38 billion. The surplus grew primarily because funds transferred to local levels remained unspent.
The province’s consolidated fund has remained in surplus since the government’s inception eight years ago. Data shows that the fund has never been in deficit since the 2018/19 fiscal year.
Capital expenditure, which is vital for infrastructure and job creation, has steadily declined. From a peak of Rs 18.11 billion in 2079/80, capital spending dropped to Rs 12.38 billion in 2025/26.
Budget implementation has been consistently hampered by frequent government changes, political instability, ministerial reshuffles, poor project preparation, and administrative delays.
Minister Lingthep held a meeting with other ministers on Thursday to address these implementation bottlenecks, but progress remains slow.
Lingthep admitted, ‘We have urged for faster budget implementation, but work is not progressing accordingly.’
