KATHMANDU: According to the Financial Comptroller General Office, Nepal’s capital expenditure for the fiscal year 2025/26 weakened further compared to previous years, with the government spending only 46.79% (Rs 190.84 billion) of its Rs 407.88 billion capital budget.

The political transitions during the year—including the six-month government led by Sushila Karki following the Gen Z protests and the subsequent three-month tenure of the Balendra Shah ‘Balen’ government—failed to improve development spending.

Conversely, current expenditure reached 88.4% (Rs 1.04 trillion) and financial management spending hit 92.56%, driving total budget expenditure to 80.55% of the total allocation.

On the receipt side, the government faced a shortfall, collecting Rs 1.24 trillion in revenue, which is only 83.87% of its Rs 1.48 trillion target.

Total government income (excluding loans) stood at Rs 1.28 trillion, highlighting a persistent trend where the state spends heavily on recurrent costs and debt servicing while failing to execute crucial physical infrastructure development.