Capital expenditure in the government’s first-quarter fiscal performance has shown notable weaknesses, particularly through significant underspending on development projects. According to the Provisional First Quarter Fiscal Performance Report for 2025-2026, capital expenditures reached only $109.3 million, sharply contrasting with the initial forecast of $403.8 million for the quarter.
This disappointing figure signifies a staggering 72.9 percent shortfall in expected spending and reflects a decline of over $100 million compared to the same period in the previous financial year. The Ministry of Finance has attributed this underperformance to a slowdown in project implementation. However, analysts caution that ongoing delays may have detrimental effects on long-term economic growth and the quality of service delivery.
The report further indicates that much of the shortfall arose from decreased transfer payments allocated for capital projects. This situation raises concerns about the government’s ability to enhance infrastructure and accelerate development initiatives, which are crucial for maintaining economic stability and growth. Addressing these challenges with a strategic focus on timely project execution could ultimately benefit the economy and improve public services, offering a glimpse of potential recovery and development in the near future.