KATHMANDU, April 6: Donors and development partners have expressed their serious concern over the government’s inability to spend the funds allocated for development projects.
In a meeting with Finance Minister Prakash Sharan Mahat, representatives from the Asian Development Bank (ADB) and the World Bank (WB) pointed out the slow mobilization of funds given by the multilateral organizations.
At a time when the government has been making very low capital expenditure and is unable to meet the revenue collection target, there has been a significant decline in inflow of the foreign direct investment. The development partners have expressed dissatisfaction over the government’s functioning. As of the first nine months of the current fiscal year, the capital expenditure has reached only 24 percent of the allocated amount, which has seriously hit the growth target, employment opportunities and money supply within the system.
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A WB delegation met with the minister on Tuesday and the ADB team on Wednesday. During the meetings, the development partners urged the minister to take initiatives for the effective implementation of various projects and programs funded by them in Nepal.
Following the meetings, Minister Mahat said the development partners are keen to assist Nepal in its development targets. “But they expressed their concerns on lack of timely spending of the funds,” he said.
Mahat said most of the projects have been delayed mainly due to the delay in site clearance of the areas of the proposed projects.
Almost every year, the government has been facing inadequate capital expenditure. The government mostly blames the situation on the procedural problems, land acquisition and site clearance, in particular.
Mahat said the development partners were requested to prioritize grants and soft loans to Nepal. According to him, the WB and the ADB are positive about the issue.
The ADB has its concern over the Dudh Koshi Hydropower Project and the Arun Hydropower Project is the concern of the WB. Moreover, they have expressed their interests in the budgetary assistance for road projects here, according to Mahat.
The development partners also expressed their concern over the ongoing economic problems that the country is facing at present while the government for the past few months has been entangled in political issues.
