Madhes Province Fails to Utilize Budget Despite Increase in Allocation

Janakpur. Despite the Madhes Province government presenting its largest budget in eight years, only 56.31 percent of the allocated amount was spent in the fiscal year 2082/83.

The provincial government had allocated Rs 46.98 billion for the current fiscal year. As of Ashar 29, 2083, Rs 26.45 billion was spent, according to the Province Account Comptroller’s Office.

This means that around Rs 20.53 billion remains to be spent. In terms of capital expenditure, only 54.12 percent, or Rs 16.96 billion, was spent.

The province’s budget implementation has been affected by political instability, uncertain sources of funds, and weak preparedness.

For the upcoming fiscal year 2083/84, the Madhes Province government has presented a budget of Rs 41.13 billion, a decrease of around 13 percent compared to the current fiscal year.

The current fiscal year’s budget was the largest since the province’s establishment, with Rs 46.98 billion allocated. However, the expenditure has not increased accordingly.

In the previous fiscal year 2081/82, the budget was Rs 43.89 billion, with 69.11 percent of the current budget and 57.84 percent of the capital budget spent.

The province has been allocating more budget to capital expenditure than current expenditure since its establishment. However, the actual expenditure has not shown a steady improvement.

The Ministry of Health and Population has spent the most, with 71.45 percent of its allocated budget spent, while the Office of the Chief Minister and Council of Ministers has spent the least.

The Ministry of Physical Infrastructure Development, which received the largest development budget, has spent 58.67 percent of its allocated budget.

The province’s budget implementation has been affected by the government’s stability, ministerial priorities, and decisions made at the end of the fiscal year.