Kathmandu, Nepal — December 16, 2025 — Nepal’s government spent only 28.74% of its annual budget allocation by the end of the fifth month of the current fiscal year, according to the Office of the Financial Comptroller General.
Capital spending was especially low. Out of NPR 407.88 billion allocated for development projects, the government spent just NPR 33.87 billion, or 8%. This slow pace has raised concerns about delays in infrastructure and public service delivery.
Recurrent spending reached NPR 398.04 billion, or 33.7% of the NPR 1.8098 trillion allocated. Financial management expenses totaled NPR 132.53 billion, or 35.32% of the NPR 375.24 billion budgeted.
In total, the government spent NPR 564.46 billion out of the NPR 1.964 trillion allocated for the fiscal year.
Revenue collection also lagged. The government aimed to collect NPR 1.533 trillion in revenue but raised only NPR 414.90 billion, or 27%, in the first five months. By the end of November, the target was NPR 520.44 billion, but actual collection reached only 78.74% of that goal.
In November alone, the government aimed to collect NPR 95.20 billion in taxes but managed only NPR 80.27 billion, or 84.31%.
So far, tax revenue stands at NPR 382.23 billion, or 28.83% of the annual target. Non-tax revenue reached NPR 24.07 billion, or 15.59%.
The government also fell short on foreign aid. It planned to receive NPR 53.44 billion in grants but has received only NPR 5.12 billion, or 9.58%.
The gap between income and spending has led to a budget deficit of nearly NPR 149.55 billion.
