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More than 90 percent of the savings deposited in troubled cooperatives has yet to be returned to rightful depositors, even seven years after the government formed a committee to resolve their financial woes. The Problematic Cooperatives Management Committee, which was formed in 2018 to manage the assets and liabilities of failing cooperatives, has been able to return only about 10 percent of the total amount claimed by depositors. 

So far, the federal government has declared 23 cooperatives as problematic and assigned the committee to handle their settlements. Of the Rs 38.42bn claimed by depositors from 22 of these institutions, the committee had returned just Rs 3.71bn to around 5,000 depositors by the end of June.

The committee has yet to begin reviewing complaints from depositors of Ideal Yamuna Cooperatives, which was declared problematic only recently. Data released by the Office of the Problematic Cooperative Management Committee shows more than 50,000 depositors are still awaiting the return of a combined Rs 34.71bn from these institutions. To recover these funds, the committee has been working to auction the movable and immovable assets of cooperative promoters and managers.

Committee Chairperson Shriman Kumar Gautam said the committee has expedited efforts to identify and freeze assets held by the promoters and managers of troubled cooperatives. “Asset valuation and auction processes have also been initiated accordingly,” he said. “We returned Rs 2.88bn to depositors in the current fiscal year alone, compared to just Rs 836.5m in the previous year.”

Under the Cooperative Act, 2017, the Ministry of Land Management, Cooperatives, and Poverty Alleviation can declare a cooperative “problematic” if it fails to return deposits parked by its members, faces a financial crisis or engages in irregularities. The ministry may appoint a committee to oversee the resolution process on the recommendation of the concerned registrar.

Of the 23 cooperatives declared problematic so far by the federal government, the committee has completed settlements in only three: Kuber Saving and Credit Cooperative, Chartered Saving and Credit Cooperative Limited, and Standard Multi-Purpose Cooperative. Several provincial governments have also declared cooperatives under their jurisdictions as problematic.

The cooperative sector, which was once described as one of the three pillars of the economy along with the public and the private sector, is now plagued by deep-rooted problems stemming from weak regulation, political interference and poor governance. Many cooperatives without proper oversight, allowing financial mismanagement and misuse of public deposits to flourish.

The Nepal Stock Exchange (NEPSE) plunged by 21. 60 points to close at 2,684. 76 points on Monday.  

Similarly, the sensitive index dropped by 4. 03 points to close at 459. 75 points.

A total of 19,415,688-unit shares of 311 companies were traded for Rs 8. 37 billion.

Meanwhile, Mathillo Mailun Khola Jalvidhyut Limited (MMKJL) was the top gainer today with its price surging by 6. 56 percent. Likewise, Rapti Hydro And General Construction Limited (RHGCL) was the top loser with its price dropped by 10. 00 percent.

At the end of the day, the total market capitalization stood at Rs 1. 51 trillion.

The Nepal Stock Exchange (NEPSE) gained 3. 75 points to close at 2, 707. 72 points on Sunday.

The sensitive index, however, dropped by 0. 42 points to close at 464. 04 points.

A total of 27,132,308-unit shares of 318 companies were traded for Rs 9. 50 billion.

Meanwhile,  Nepal Finance Ltd. (NFS) was the top gainer today, with its price surging by 10. 00 percent. Likewise, 12 % Goodwill Finance Limited Debenture 2083 (GWFD83) was the top loser as its price fell by 8. 87 percent.

At the end of the day, total market capitalization stood at Rs 1. 52 trillion.

With just days remaining in the current fiscal year 2024/25, more than half of the development budget remains largely unspent. According to the Financial Comptroller General Office (FCGO), under the Ministry of Finance, only 46.59 percent of the allocated capital budget had been spent as of July. Out of the Rs 352.35bn earmarked for capital expenditure, just Rs 164.15bn has been utilised.

The current fiscal year ends on July 16.

The government utilized 63.47 percent of its capital budget in 2023/24, 61.44 percent in 2022/23 and 57.23 percent in the 2021/22.  

What is worrying is the growing trend of eleventh-hour development spending, which not only compromises the quality of work but also fails to deliver the intended project outcomes. Data from the Financial Comptroller General Office (FCGO) shows that Rs 1.66bn in capital budget was spent on Wednesday alone. The figures for earlier days were Rs 2.57bn on Tuesday, Rs 1.01bn on Monday, and Rs 1.19bn on Sunday. 

While officials argue that the surge in spending toward the end of the fiscal year is largely due to the release of payments for completed works, development projects are often initiated late in the fiscal year, not for genuine urgency but to bypass proper oversight. This practice, largely driven by collusion between contractors and officials, results in substandard work that escapes scrutiny under the pretext of rushed timelines. These projects are frequently delayed, poorly executed or left incomplete due to hurried implementation.

The government’s spending progress toward debt servicing, however, looks satisfactory. Out of the Rs 367bn set aside for loan and interest payments in the current fiscal year, Rs 311bn, or about 86 percent, has already been spent.

Similarly, the government has achieved 82 percent progress in recurrent spending. Out of the Rs 1,140.66bn allocated for recurrent expenses in the current fiscal year, around 82 percent, or Rs 930.72bn.

Overall, the government has spent approximately 75 percent of the total budget of Rs 1,860.3bn allocated for the current fiscal year. Minister for Finance Bishnu Prasad Poudel revised the budget downward by nearly Rs 200bn during the mid-term review of the budget in February.

Revenue mobilisation, on the other hand, stands at 74.69 percent with less than two weeks remaining in the fiscal year. Of the targeted Rs 1,419.3bn, the government had collected Rs 1,060.05bn as of Wednesday.