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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.

The Nepal Stock Exchange (NEPSE) gained 10.98 points to close at 2,705.81 points on Thursday.

Similarly, the sensitive index surged by 2.74 points to close at 465. 02 points.

A total of 24,976,366-unit shares of 311 companies were traded for Rs 9. 64 billion.

Meanwhile, Nepal Finance Ltd. (NFS) was the top gainer today, with its price surging by 9. 98 percent. Likewise, Saptakoshi Development Bank Ltd (SAPDBL) was the top loser as its price fell by 10.00 percent.

At the end of the day, total market capitalization stood at Rs 4. 50 trillion.

Despite ongoing improvements in other areas, the 13-kilometer Daunne section of the Butwal–Narayangadh road remains in poor condition, causing significant difficulties for local residents and travelers. Although the project aims to ease travel across the route, slow progress by the Chinese contractor has drawn concern, with the company frequently cited for delays and lack of timely response.

Frequent accidents have been reported in the area, raising safety concerns, particularly during the monsoon and upcoming festival seasons. The project office attributed the delays to ongoing construction of culverts in the Daunne stretch, where 103 culverts are being built. While most are complete, work on several remains unfinished.

Shiva Khanal, Engineer and Information Officer at the Narayangadh–Butwal Road Planning Office (Eastern Section), said only four of the 65 kilometers from Daunne to Narayangadh are part of the problematic Daunne section. “All culvert work will be completed in a few days, and travel disruptions should ease,” he added. A diversion in Dumkibas is also set to be completed within five days. In the meantime, vehicles are forced to take a 20-kilometer detour via Hongshi Cement.

Dadhiram Kharel, President of Paschim Nepal Bus Entrepreneurs Pvt Ltd—Nepal’s largest public transport company—criticized the government for failing to ensure a passenger-friendly road system. “We knew the monsoon would come, but timely preparations were lacking. Passengers are suffering as a result,” he said. The company operates over 400 vehicles daily on this road. While vehicles heading to Kathmandu can divert via Palpa and Pokhara, those traveling east face major difficulties.

Delays in road construction have been attributed to multiple factors, including the Covid-19 pandemic, intergovernmental coordination gaps, delays in tree felling, and seasonal work stoppages during monsoon. Kharel noted that despite the introduction of modern buses in the transport sector, poor road conditions continue to discourage operators. “Once this road is completed, many travelers may opt for road travel instead of flying,” he said.

Last year, a bus en route to Nepalgunj from Kathmandu was swept away by the overflowing Triveni River while crossing a diversion late at night. Fortunately, all 38 passengers, including three infants, were rescued using an excavator. Such incidents, transport entrepreneurs say, are becoming increasingly common.

Ghanshyam Giri, Chair of Binayi Triveni Rural Municipality in East Nawalparasi, stated that local authorities and Nepal Police are regularly involved in rescue operations in the Daunne area. “While some work has been done, the contractor appears to lack urgency, and progress has slowed,” he said.

The Butwal–Narayangadh road spans 113 kilometers. The Butwal to Daunne section measures 48 kilometers and falls under the western section of the project. According to Bikash Khanal, Engineer and Information Officer of the Western Section Planning Office, physical progress there has reached 67.95 percent, while financial progress stands at 62.43 percent. The Daunne portion of this section is 10 kilometers long. Khanal said the target is to complete work by the 2024/25 fiscal year, although construction pauses during the monsoon. So far, 60.92 percent of the road has been blacktopped, with eight out of nine bridges completed and work ongoing on the Bhalhi main bridge. The total cost of this section is Rs 7.86bn, including VAT.

From Daunne to Narayangadh—a stretch of 65 kilometers—physical progress stands at 69 percent and financial progress at 68 percent. Of the planned 33 culverts, only six remain incomplete. So far, 53 kilometers have been blacktopped on one side and 34 kilometers on both sides. The budget for this section is Rs 130m, including VAT.

Both sections are being constructed by China State Construction Engineering Corporation (CSCEC-China) under a project led by the Department of Roads with support from the Asian Development Bank (ADB). The deadline for project completion has been extended three times, with the current deadline set for July 22. However, preparations are underway to seek a fourth extension due to incomplete work. A four-lane road is being constructed in forest areas and a six-lane road in market areas.

On 10 Nov 2024, local representatives from Rupandehi, East Nawalparasi, and West Nawalparasi submitted a memorandum to Prime Minister KP Sharma Oli, urging faster progress. This led to a high-level meeting involving federal and provincial MPs, district chiefs, and relevant ministries, after which the stalled work briefly gained momentum.

Bhagauti Yadav Rudal, Chair of the District Coordination Committee, Nawalparasi (Bardaghat Susta West), emphasized the hardships locals have faced due to dust and poor road conditions for years.

Chairperson Ghanshyam Giri reiterated that if the roads in Daunne and Dumkibas are completed, long-standing issues in the Butwal–Narayangadh corridor would be resolved. He noted that the current challenges stem from delayed culvert construction and added that slum dwellers in the area may see some relief soon. However, only basic maintenance work is being carried out during the rainy season. The overall budget for this section has reached Rs 9.13bn, including VAT.