Biratnagar, April 30: Rising inflation and shortages of construction materials have slowed development works in Koshi Province, putting significant pressure on the government’s ability to utilise its capital budget.
With nine months of fiscal year 2025/26 already completed, only about one-third of the total budget has been spent. According to the Provincial Accounts Controller Office, just Rs. 11.04 billion out of the revised Rs. 32.45 billion budget had been utilised by mid-March. Of this, only Rs. 4.17 billion falls under capital expenditure, highlighting weak progress in development spending.
The government now faces the daunting task of spending around Rs. 21.41 billion within the remaining 75 days—an লক্ষ্য that appears increasingly unrealistic given the current pace.
Spending has been particularly sluggish in key ministries. The Ministry of Physical Infrastructure Development has spent only Rs. 2.52 billion out of its Rs. 10.65 billion allocation, while the Ministry of Drinking Water, Irrigation and Energy has also lagged far behind its targets.
Koshi Province’s Minister for Economic Affairs and Planning, Bidur Lingthep, attributed the slowdown to rising global fuel prices and ongoing tensions in the Middle East, which have disrupted supply chains and increased costs. Contractors have halted projects citing material shortages and escalating expenses, effectively putting a brake on capital expenditure.
Contractors have also formally informed the government that continuing work under current conditions is not feasible, further dimming prospects of meeting this year’s development targets. #Nepal
