Himal Press 
KATHMANDU: The government’s capital spending remained at a dismal 23.58% at the end of the third quarter of fiscal year 2025/26, according to data released by the Financial Comptroller General Office (FCGO). With only three months in the fiscal year remaining, the government has utilized only Rs 96.19 billion of the Rs 407.88 billion allocated in the current fiscal year.
Capital spending remained at 39.53% of the revised target of Rs 243.3 billion made through the mid-term review of the budget in February.
The government revised the budget downward by 14.06% due to low budget utilization and a projected shortfall in revenue mobilization.
Overall budget spending reached 53.97% by the end of the third quarter. Out of the total allocated budget of Rs 1,964.11 billion, the government spent Rs 1,059.95 billion in the first nine months of the fiscal year. Overall spending progress remained at 62.78% as per the revised spending target of Rs 1,688.32 billion.
In contrast, recurrent expenditure, which covers regular expenses such as salaries and administrative costs, has shown relatively stronger progress at 63.3%. The government has utilized Rs 747.52 billion out of the Rs 1,180.98 billion allocated under the heading in nine months.
Similarly, progress in financial management expenditure, which is used to service domestic and foreign debt, has reached 57.63%. The government has spent Rs 216.23 billion out of the allocated Rs 375.24 billion under this heading.
In 2024/25, the government utilized 85.95% of its total budget. Capital spending reached 63.2% during the fiscal year, while financial management and recurrent expenditures stood at 87.87% and around 85.95%, respectively.
On the revenue front, the government has mobilized 59.88% of its annual target by the end of the third quarter. It has collected Rs 886.28 billion against the targeted Rs 1,480 billion over the nine months.
Tax revenue collections reached Rs 798.77 billion—60.25% of the targeted Rs 1,325.58 billion, while non-tax revenue mobilization stands at 56.67%. The government has collected Rs 87.51 billion in non-tax revenue against the target of raising Rs 154.41 billion.
However, grant mobilization has remained weak. The government has secured only Rs 15.64 billion in grants. This represents just 29.21% of the targeted Rs 53.44 billion.
Projecting a shortfall in revenue collection, the government has revised the total revenue target downward to Rs 1,378 billion through the mid-term review.
