Nepal, Jan. 31 -- As of mid-January, the capital expenditure was just Rs 47.54 billion, when the government's overall expenditure stood at 46.06 percent of the annual budget, an increase of 10.75 percentage points compared to the same period last fiscal year. Of the total budget of Rs 1.964 trillion for Fiscal Year 2025/26, spending stood at Rs 904.6 billion.

Weak capital expenditure and mounting pressure on revenue collection marked the government's fiscal performance in the second quarter of the current fiscal year. According to a report released by the Ministry of Finance, capital spending stood at only 11.66 percent of the allocated amount of Rs 408 billion while revenue fell short of the mid-year target by nearly Rs 130 billion.

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