The Karnali provincial government recorded low capital spending in the initial three months of the current 2026/27 fiscal year, utilizing under 4 percent of its allocated funds. By the end of Ashoj, capital expenditure stood at Rs 815.92 million out of a total capital allocation of Rs 20.74 billion. The financial performance has raised questions regarding the administration's capacity to complete development projects, despite allocating billions of rupees to public services and local infrastructure. To address the slow utilization of funds, the provincial authorities are now focusing on stalled projects to increase spending levels. Individual ministries also reported minimal capital utilization during this initial period. The Ministry of Water Resources and Energy Development expended Rs 94.92 million over the three months, having received a capital allocation of Rs 4.52 billion for the full fiscal year.
Karnali Spends 3.93 Percent of Capital Budget in First Quarter
The provincial government spent Rs 815.92 million out of its total Rs 20.74 billion capital allocation by the end of Ashoj.
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In short
- Karnali spent Rs 815.92 million of its Rs 20.74 billion capital budget in the first quarter of fiscal year 2026/27.
- The overall capital budget utilization reached 3.93 percent by the end of the month of Ashoj.
- The Ministry of Water Resources and Energy Development expended Rs 94.92 million from its Rs 4.52 billion budget.
From public sources and the WeNepal research team
https://wenepal.com/article/karnali-spends-3-93-percent-of-capital-budget-in-first-quarter-20261101
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