The government’s capital expenditure stood at only 9.8% in the first four months of the current fiscal year 2024/25, reflecting a sluggish pace in development spending. Data from the Financial Comptroller General Office shows that the government spent Rs 34.53 billion out of the allocated amount of capital budget of Rs 352.35 billion as of mid-November.

The government had announced a total budget of Rs 1860.30 billion for the current fiscal year, of which Rs 415.20 billion, or 22.31%, has been spent so far. Current expenditure accounts for the largest share, with Rs 292.52 billion (25.65% of the annual target) spent. The government has allocated Rs 1140.66 billion under this heading.

In the financial management category, the government spent Rs 87.96 billion from the allocated amount of Rs 367.28 billion for debt servicing.

Revenue collection has also remained sluggish in the review period, achieving only 22.36% of the annual target. The government has collected Rs 329.15 billion by mid-November against the revenue target of Rs 1471.63 billion for the year. The government’s goal of raising Rs 52.32 billion through foreign grants remains challenging, with no progress recorded so far.

The low expenditure and poor revenue performance raise concerns as usual about the government’s ability to meet its fiscal targets and implement development programs effectively.