Capital spending has emerged as a significant issue in the Government’s fiscal performance for the first quarter, as highlighted in the Provisional First Quarter Fiscal Performance Report for 2025-2026. The report reveals that capital expenditure reached only $109.3 million, a stark contrast to the anticipated $403.8 million for the quarter. This shortfall marks an alarming 72.9 percent deficit compared to projections and represents a decline of over $100 million when compared to the same period in the previous financial year.
The Ministry of Finance has attributed this underspending primarily to slower project implementation. However, analysts are expressing concern that if these delays continue, they could have detrimental effects on long-term economic growth and the quality of service delivery. The report indicates that the majority of the shortfall stemmed from reduced transfer payments designated for capital projects.
The situation necessitates immediate attention to avoid further disruptions in planned initiatives and to ensure that economic stability is upheld. Addressing these issues promptly could pave the way for improved fiscal performance in the coming quarters and better outcomes for development initiatives.
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