Capital Expenditures Doubles in Current FY

May 18: In the first nine months of the current FY, the government has spend Rs 74.09 billion on development projects, shows a report of Nepal Rastra Bank. According to the report ‘Current Macroeconomic and Financial Situation of Nepal’ that is based on nine months’ data of the economy, the figure is 23.75 percent of the total allocated budget of capital expenditure.

The capital expenditure which gives returns in future was Rs 32.44 billion in the first nine months of the last FY. As per the NRB statistics, the government spent more than twice on the capital expenditure in the review period of the current FY compared to the corresponding period of the last FY.  Economists opined that given that the government make enormous investment in the capital expenditure and continues it, economic activities will increase which will eventually accelerate development process in the country.

“Boost in capital expenditure opens door of opportunities,” opined Daya Ram Pandey, an economist. “Growth in economic activities will lead to new employment opportunities, citizens will earn both name and fame,” said Pandey, “Increase in capital investment provides positive result to economy.”

In the review period, the total government expenditure on a cash basis increased 46.6 percent to Rs 419.93 billion. Such expenditure had increased just 8 percent to Rs 286.54 billion in the corresponding period of the previous year.

Apart from capital expenditure, the recurrent expenditure increased 44.6 percent to Rs 305.77 billion in the review period.  Such expenditure stood at Rs 211.44 billion in the corresponding period of the previous year.