With just three months remaining in the current fiscal year, Sudurpaschim Province has spent less than 20 percent of its allocated capital budget, raising concerns over stalled development and poor fiscal management. According to the Provincial Controller of Accounts Office, some ministries have spent as little as two percent of their capital allocations by March. The Ministry of Internal Affairs and Law has spent only Rs 5.5m out of its Rs 243.2m capital budget—just 2.29 percent. This stagnation reflects a broader failure in both budget formulation and implementation, with critical infrastructure and development projects halted and public expectations unmet.
The Ministry of Physical Infrastructure, with the highest capital budget of Rs 14.1bn, has spent only 24 percent, while the Ministries of Social Development, Agriculture, and Industry have managed to spend only about 10 percent of their respective capital allocations. Despite a change in government and a budget that was already delayed by three months, execution has further slowed. Expenditure figures from the Provincial Controller of Accounts Office show that capital spending across ministries ranged from two percent to 35 percent as of March. The only exceptions were the Ministry of Economic Affairs and the Office of the Chief Minister and Council of Ministers, which reported 50 percent capital budget utilization.
The Office of the Chief Minister and Council of Ministers spent Rs 16.7m out of its Rs 33.2m capital allocation, while the Ministry of Economic Affairs spent Rs 12.7m of its Rs 29m capital budget. Conversely, the Ministry of Internal Affairs and Law has failed to utilize its budget effectively. “Only Rs 5.5m of the Rs 240m capital budget has been spent, just 2.29 percent,” confirmed Provincial Treasurer Basudev Joshi. “The situation is worse than in previous years.”
He emphasized that serious planning for capital expenditure should begin by June at the latest. Internal administrative issues have also played a role. Minister Hirasingh Sarki, from CPN-UML, faced a leadership vacuum after Secretary Sushil Baidya retired in Dec 2024. Baidya’s replacement was delayed, leaving the ministry without a secretary for two months. When Liladhar Subedi, Secretary of the Office of the Chief Minister, was given additional responsibility in March, he rarely attended office.
“He has barely been present—only seven days since March 4—and hasn’t taken any initiative,” said Keshav Chand, the Minister’s personal secretary. “No project moved beyond salaries.” The Ministry of Internal Affairs also oversees the Ministry of Communications, which has a Rs 9m budget. It includes Rs 2m for journalist capacity building via the Federation of Nepali Journalists, Rs 5m for institutional media development, and Rs 2 million for public welfare advertisements.
“I went to the secretary multiple times, but he neither rejected nor approved anything,” said Bharat Bahadur Shah, President of FNJ’s provincial committee. Secretary Subedi has reportedly clashed with staff, conducted random inspections, and failed to coordinate with the minister. His conduct led to calls for his replacement. “He harassed employees and failed to serve the public,” said one source within the ministry.
One significant delay involves a Rs 4 million project for an Armed Police Force (APF) base in Punarbas Municipality. Local resident Siddha Raj Ojha donated 11 katthas of land, but the project stalled due to Subedi’s inaction. “Despite my poor health, I donated the land to protect the border. The work hasn’t started,” Ojha lamented.
The ministry also allocated Rs 7m for a provincial office of the national news agency RSS, but the contract remains unapproved. “We submitted all required documents, but nothing has progressed,” said RSS provincial chief Siddharaj Bhatta.
Frustrated with the deadlock, Minister Sarki has formally requested that Chief Minister Kamal Bahadur Shah replace Secretary Subedi. Attempts to delegate financial authority to Deputy Secretary Dharmananda Joshi also failed after Subedi obstructed the move. Joshi has since requested a transfer. “It’s become routine to bring in people who don’t work and obstruct those who try to,” said Minister Sarki. “Without employee cooperation, capital budget implementation is impossible.”
An official from the Ministry of Physical Infrastructure revealed that most of their reported expenditure—24 percent—consisted of payments for liabilities from the previous fiscal year. “Actual spending for this year may be under five percent,” the official said. Following the Ministry of Physical Infrastructure, the Ministry of Social Development has the second-highest capital budget. But it has spent only Rs 217.7m—eight percent of its Rs 2.9bn capital allocation. Its current expenditure is 44 percent, with Rs 1.82bn spent out of a Rs 4bn allocation.
The Ministry of Land Management, Agriculture, and Cooperatives also faces underperformance. By March, it had spent only Rs 2.27m—8.82 percent of its Rs 272.2m capital budget. It spent Rs 526m of its Rs 2.64bn current budget, just 20 percent. The figures paint a bleak picture of budgetary paralysis in Sudurpaschim, where bureaucratic delays, leadership gaps, and administrative inefficiencies continue to hinder development.
