Only around 15 percent budget allocated for national pride projects spent in the first half of current fiscal year

Published On: February 11, 2021 06:00 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Feb 11: The government has spent only 15.19 percent of the amount allocated for the construction of national pride projects during the first half of the current fiscal year.

The Ministry of Finance has revealed this fact in a mid-term review of the annual budget released on Tuesday. The government has earmarked Rs 92.06 billion to spend in 25 national pride projects this year.

During mid-July and mid-January, the Kathmandu-Tarai Fast Track observed only 11.1 percent progress in its construction. Of the total Rs 8.93 billion allocated for the project, the project authority was able to spend only Rs 1.23 billion.

Similarly, the progress of Postal Highway was just 25.94 percent of allocated amount of Rs 7.01 billion and Railways Development Project was 22 percent of Rs 8.66 billion. During the period, the authority spent only Rs 581.90 million out of allocated volume of Rs 5.46 billion in Melamchi Water Supply Project.  

With its inability to work on infrastructure projects, the government has downsized the capital expenditure to Rs 283.04 billion against the allocated amount of Rs 352.91 billion for the running fiscal year. The government has blamed COVID-19 pandemic for its inefficiency. 

In the revised annual budget, the government has blamed the slow expenses to the extension of the deadline of the projects, delayed payments, failure to resolve the issue related to the public procurement system and contractors, delayed approval of the guidelines and laws related to implementation of projects and lack of coordination among the three tiers of government.


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