Nepal spends when the rain arrives, then it washes all away

Nepal's fiscal year, beginning in mid-July, creates a predictable yet deeply problematic pattern of government spending. As the fiscal year draws to a close in the month of Asar, there's a frantic, last-minute push to disburse funds, often on projects that are ill-timed and vulnerable to the monsoon rains that inevitably follow. This 'development done in Asar' has become a disheartening annual ritual, highlighted by the staggering Rs233 billion spent in Asar 2082 BS alone – a sum that represented over 15% of the entire fiscal year's expenditure.

The root of this inefficiency lies in Nepal's unique fiscal calendar, which deviates from the international norm and aligns with the Bikram Sambat calendar. While historical reasons, such as the naming of annual taxes after months like Saun, or agricultural cycles, may have once justified this system, it now appears to be an outdated tradition that facilitates, rather than prevents, wasteful spending. The heavy monsoon rains and short, frigid winters further complicate the practical execution of development projects initiated under such time pressure.

Despite the clear and recurring problem, there is a disheartening lack of concrete proposals for reform. Even with new political forces like the Rastriya Swatantra Party (RSP) entering parliament with promises of radical transformation and governance reform, the issue of the fiscal year's timing and the associated financial wastage seems to have been overlooked. This suggests that the entrenched system, despite its obvious flaws, will likely persist, leading to another year of squandered public funds.