KATHMANDU, March 16: Vice chairman of National Planning Commission (NPC) Yuba Raj Khatiwada has pointed out seven reasons behind low spending of budget allocated for development projects.
Speaking at the Finance Committee of parliament on Wednesday, Khatiwada said delay in authorization of the budget allocation by line ministries, lack of coordination between District Development Committee and concerned ministries, policy complication in excavation of soil, rocks, sands and aggregates, and lack of laborers were the problems behind low spending.
Related story
National Assembly panel points out lack of coordination among t...
Similarly, other problems, according to Khatiwada, are weak managerial skills of bureaucrats, obstruction by parliamentary committees and quasi-judicial bodies, weak capacity of contractors, and obstruction of local people by putting forth unnecessary demands.
Only 12.65 percent of the total budgetary allocation for development projects has been spent in the first eight months of 2015/16. According to the Financial Comptroller General Office, only Rs 26.41 billion allocated for development works has been spent until March 15.
Despite the government's commitment to up development spending, expenditure on development works like roads, hydropower plants and drinking water projects do not exceed 60 percent of the total allocation due to our sluggish bureaucracy, legal and policy constraints and obstructions by locals, among others. The growing trend of spending the budget at the eleventh hour has been affecting quality of work.
Ministry of Energy fares worst among all ministries in terms of budget expenditure. The ministry has been able to spend only Rs 4.53 billion of the total budgetary allocation of Rs 51.21 billion till March 13.
Finance Secretary Lokdarshan Regmi non-financial factors have been affecting development works. "Earthquake coupled with disruption in supply of essential products was the reason behind low expenditure of budget this year," Regmi said, adding that not a single project has reported satisfactory progress this year.
Ministry of Physical Infrastructure and Transport, and Ministry of Urban Development have spent 20.33 percent and 2.64 percent of their allocated budget, respectively. Likewise, Ministry of Peace and Reconstruction has managed to spend 17.43 percent of the allocation, while Ministry of Culture, Tourism, Culture and Civil Aviation has so far spent 23.06 percent of development budget. Ministry of Agriculture has managed to spend 40.6 percent of the development budget.
Similarly, Ministry of Irrigation has spent 22.22 percent of the budget while 34.4 percent of development budget allocated to Ministry of Local Development and Federal Affairs has been spent so far. Likewise, Ministry of Education has spent 51.72 percent of development budget.
Ministry of Defense has managed to spend 59.65 percent of its development budget, while 57.71 percent of development budget allocated to Ministry of Home Affairs has been spent.
Former Finance Minister Ram Sharan Mahat told the committee that inert bureaucracy was the major reason behind low progress in development spending. "Authorization of budget allocation was issued on the first day of the fiscal year. But it is said that many projects have not received authorized to spend budget yet," Mahat said, adding, "This is a serious case."
Khatiwada said the issuance of authorization for spending at project level, improved coordination between ministries and district development committees, policy reforms in excavation of sand and aggregates, review of minimum wage of the laborers can help expedite development projects. He also requested parliamentary panels and quasi-judicial bodies not to hinder development works.
