Govt’s inability to make capital expenditure leads to utilization of only 15.16 percent of allocated funds
KATHMANDU, Feb 14: As the government is unable to improve its capacity to spend the development budget, the work progress of national pride projects appears pathetic.
The mid-term review of the budget for FY 2022/23 unveiled by Finance Minister Bishnu Prasad Paudel on Sunday shows only 15.16 percent of the total budget allocated for projects under national pride category has been spent during mid-July to mid-January.
The government has declared 24 projects as national pride projects. These include the projects related to road network, tourism, religious places, airspace, water supply and electricity, among others. Of these, only 456 MW Upper Tamakosi Hydropower Project has been constructed.
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For the remaining 23 projects, the government has allocated a total budget of Rs 98.97 billion for the current fiscal year. However, only around Rs 15 billion has been spent so far.
According to the Ministry of Finance (MoF), the government was able to spend only Rs 807.9 million out of Rs 3.57 billion allocated under recurrent expenditure for the 23 national pride projects. Likewise, Rs 14.05 billion out of Rs 88.53 billion and Rs 141.30 million out of Rs 6.86 billion were spent on capital expenditure and financial management, respectively.
During the review period, the Sunkoshi-Marin Diversion Multi-Purpose Project witnessed 88 percent of progress out of its annual target, which was the largest among all. The project has started digging a 13 km long tunnel, while the detailed engineering design of the headwork, power plant and surge shafts has been completed. The project officials have not discussed the benefits of the project with the locals, which is hindering the construction work.
According to the MoF, the Mid-hill Highway (Pushpalal Highway) spent 18 percent budget, the Postal Highway spent 42.60 percent, the North-South Highway (Koshi Corridor) spent 39 and the Kaligandaki Corridor spent 22.71 percent of the budget allocated for the current fiscal year.
Similarly, the Karnali Corridor spent 9 percent, the Metro Rail and Monorail Development Project spent 22 percent, the Kathmandu-Terai Expressway spent 9.11 percent, the Nijgadh International Airport spent 26.92 percent, the Pashupati Area Development Trust spent 47.48 percent and the Lumbini Development Trust spent 24.16 percent budget.
The Budhigandaki Hydropower Project spent 15.86 percent budget, the Babai Irrigation Project spent 34.88 percent, the Mahakali Irrigation Project spent 42.86 percent, the Sikta Irrigation Project spent 20.46 percent, the Rani Jamara Irrigation Project spent 16.27 spent, the Bheri Babai Diversion Multipurpose Project spent 19.38 percent, the Sunkoshi-Marin Diversion Project spent 88 percent and the President Chure Conservation Project spent 18.78 percent budget. The much hyped Millennium Challenge Account Nepal achieved only 3.66 percent work progress.
The MoF has attributed slow work progress of the national pride projects to lack of separate laws on selection and implementation of projects, lack of standard for coordination between the central and provincial governments and failure to incorporate the locals while taking forward the projects.
Likewise, failing to take into account issues such as methods, processes, costs, the necessary skilled technicians and manpower and poor capacity of contractors and lack of technical efficiency of construction professionals have also been blamed for the situation.
