Poor Spending, Bigger Deficit

Another fiscal year has ended with a familiar and costly failure: the government spent less than 45 percent of the budget allocated for development projects, while the national treasury closed the year with a deficit of more than Rs 344 billion. The numbers tell a troubling story. Of the Rs 407.88 billion allocated for capital expenditure, only Rs 181.59 billion was spent. This is not merely below target; it is significantly worse than last year's execution rate of 59.59 percent. At the same time, total government spending reached Rs 1.565 trillion against total revenue of Rs 1.221 trillion, leaving a financing gap that will have to be bridged through borrowing and other sources. The spending pattern reveals where the government's priorities ultimately lay. Recurrent expenditure exceeded 88 percent, covering salaries, pensions, social security, and administrative costs. Financial management expenditure also surpassed 90 percent. Development spending, which finances roads, irrigation systems, schools, hospitals, and other productive assets, remained the weakest link. Revenue collection also fell far short of its target, placing additional pressure on public finances. Taken together, these figures expose a fiscal structure that spends comfortably on consumption but struggles to invest in long-term growth.