News

Capital expenditure lags sharply in first quarter

January 8, 2026 4:54 pm

[File Photo]

Capital spending remains a major weak point in the Government’s first-quarter fiscal performance, with significant underspending recorded across development projects.

The Provisional First Quarter Fiscal Performance Report 2025-2026 shows capital expenditure amounted to just $109.3 million, well below the $403.8 million forecast for the quarter.

This represents a 72.9 percent shortfall against projections and a decline of more than $100 million compared to the same period last financial year.

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While the Ministry of Finance attributes the underspending to slower project implementation, analysts warn continued delays could affect long-term economic growth and service delivery.

The report highlights that most of the shortfall came from reduced transfer payments for capital projects.

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