FM Wagle says budget designed to speed up capital spending

KATHMANDU: Finance Minister Swarnim Wagle has said that the government has introduced the budget with a focus on accelerating capital expenditure.

Responding to lawmakers’ queries during Friday’s House of Representatives session on the Appropriation Bill 2083, he stated that the Ministry of Finance has delegated significant authority to line ministries to ensure faster implementation of development projects.

Wagle explained that ministries have been given the power to reallocate funds within approved budget headings based on project requirements, allowing flexibility in spending without repeated approvals from the finance ministry.

He added that education and health sector budgets have largely been allocated to local governments in line with constitutional provisions, ensuring decentralized implementation.

“Efforts have been made this year to ensure capital expenditure happens faster by delegating greater authority to the concerned ministries,” he said, noting that ministries must still coordinate on resource management, including loans, grants, and domestic and external financing arrangements.

He also clarified that Nepal’s mandatory expenditure—such as salaries, debt servicing, and social security allowances—accounts for a large portion of the budget, emphasizing that recurrent expenditure is not inherently negative compared to capital spending.

Wagle further urged lawmakers to understand that significant budget outlays are already committed to obligatory financial responsibilities, which are reflected under recurrent expenditure.