Sector Wise Absorptive Capacity of Government Budget of Nepal

Abstract

This article based on the sector wise absorptive capacity of government budget of Nepal. The main objective are to find out the pattern and implication of off-budget items in government budget. This article has been done using both quantitative and qualitative method. The research is quantitative research based upon macro data from Fiscal Year 2011/12 to 2015/16 government budget absorption capacity and 2011/12 to 2016/17. The basic objective of this article is to find out sector wise absorptive capacity of the government budget and to find out the size of off budget through off treasury but not being limited to it. For this purpose both descriptive as well as analytical and empirical research design is follow. The recent trends have been quite different. Off- budget items are mounting. The loan part of foreign assistance has been incorporated in budget whereas grant assistance is increasingly being routed through off-budget. This is concerned with the government finance, budgeting and Sector wise Absorptive Capacity of Government Budget of Nepal and modes of payment of Official Development Assistance (ODA) provided by Development partners in Nepal. In current scenario of government of Nepal almost 20% of national budget depends on the ODA. Government budget are not fully absorb, almost 85% budget are consumed. Public general service and economic affairs sector has high range of absorptive capacity. During the entire fiscal year budget expenditure could not expedite, government institution consumed less than 50% of total budget but at the end of the fiscal year more than 85% budget are spent to avoid budget freeze. ODA should be focus on the sartorial balance to ensure the equal development of nation.