Kathmandu, May 28 -- Nepal's economy is coming under increasing strain from a widening gap between ambitious budget size, weak revenue collection and persistently low capital expenditure, with economists warning that the country's growth prospects are deteriorating as the government struggles to spend effectively and raise enough resources.

Successive governments have announced larger budgets year after year, but the inability to mobilise resources and implement spending plans has forced repeated downward revision through midterm budget reviews. Economists say this trend has weakened development spending, slowed investment and increased dependence on public debt.

The problem has become more serious in recent years as economic growth has...