Gold price increases by Rs 900 per tola on Wednesday
The price of gold has increased by Rs 900 per tola in the domestic market on Wednesday.
According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 195, 500 per tola today.
Similarly, the price of silver has increased by Rs 65 and is being traded at Rs 2, 225 per tola today.
Nepse plunges by 2. 59 points on Tuesday
The Nepal Stock Exchange (NEPSE) plunged by 2. 59 points to close at 2,656.06 points on Tuesday.
Similarly, the sensitive index dropped by 0. 50 points to close at 452. 65 points.
A total of 16,400,775-unit shares of 306 companies were traded for Rs 7. 65 billion.
Meanwhile, Pure Energy Limited (PURE) was the top gainer today with its price surging by 9. 99 percent. Likewise, Guardian Micro Life Insurance Limited (GMLI) (GLBSL) was the top loser with its price dropped by 4. 62 percent.
At the end of the day, the total market capitalization stood at Rs 1. 49 trillion.
Capital spending still at 41 percent as fiscal year nears close
The government is falling short on capital spending yet again, highlighting long-standing inefficiencies in implementing its development budget. With one month in the current fiscal year 2024/25 remaining, the government has been able to utilize only 41.01 percent of its capital budget of Rs 352.35bn. According to the Financial Comptroller General Office (FCGO), the government has been able to spend only Rs 144.49bn of its capital budget till June 15.
The new fiscal year begins on July 17. This means the government has about a month to spend nearly 59 percent of its capital budget. The low capital spending continues a worrying trend of funds allocated for infrastructure and development works remaining underutilized. In the previous fiscal year 2023/24, the government utilized 63.47 percent of its capital budget, amounting to Rs 191.73bn out of Rs 302bn. In 2022/23, 61.44 percent of the capital budget of Rs 380.38bn, or Rs 233.69bn, was spent. Likewise, the 2021/22 saw a low capital budget utilization at 57.23 percent. These figures pale in comparison to pre-covid years when capital spending remained at 76.93 percent in 2018/19 and 80.77 percent in 2017/18.
The consistently poor capital expenditure performance can be attributed to several deep-rooted issues. Many development projects are included in the budget without final designs, feasibility studies or necessary environmental approvals. These result in delayed implementation. Moreover, the slow procurement process due to bureaucratic hurdles also affect project timelines. It often takes months just to award contracts. Contractor inefficiencies, largely due to the tendency of holding multiple projects at a time, and a lack of monitoring further compound the issue.
Another worrying trend in Nepal’s development landscape is the last-minute spending rush toward the end of the fiscal year. State agencies, which under pressure to meet spending targets, disburse large sums in the final weeks. Experts say last minute spending compromises the quality of work and fails to deliver desired outcomes.
Revenue mobilization at 71.84 percent
The government has achieved 71.84 percent progress in revenue mobilization over the first 11 months of the current fiscal year. According to the FCGO, the government has mobilized Rs 1,019.67bn in revenue in the review period which is 71.84 percent of Rs 1,419.30 that the government is targeting to raise in the current fiscal year. Of the total revenue, Rs 921.40bn is from tax revenue and the remaining from non-tax revenue
Gold price drops by Rs 2, 000 per tola on Tuesday
The price of gold has dropped by Rs 2, 000 per tola in the domestic market on Tuesday.
According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 195, 000 per tola today. It was traded at Rs 197, 000 per tola on Monday.
Similarly, the price of silver has dropped by 5 and is being traded at Rs 2, 160 per tola today.
