“The government will be presenting the budget for next fiscal year before the current financial year ends (in mid-July),” Minister Koirala said, addressing local donors´ meet in Lalitpur. He also assured that the incumbent government would maintain budgetary discipline and focus on increasing capital expenditure in the next fiscal year.[break]
The minister´s comment comes at a time when delay in launch of full budget this fiscal year was identified as the major reason for low capital spending, which has hampered development works like infrastructure building that generate huge job opportunities.
“The incumbent government has laid focus on development of infrastructure, roads, hydropower projects, transmission line, mineral excavation, tourism and commercial agriculture,” Minister Koirala told representatives of various bilateral and multilateral donor agencies, while urging them to come up with long-term development strategies that are in line with policies framed by the government.
Koirala, however, acknowledged that the government has been failing to meet its development goals largely because of slow disbursement of funds allocated for projects and delay in procurement process.
Earlier, the Asian Development Bank had publicly stated that Nepal government takes over two years to award 25 percent of contracts and additional two years to disburse 10 percent of the funds allocated for projects.
“We know effective implementation of aid brings good results… and reduces fiduciary risks… and we are committed to enhance capital expenditure,” the minister said, clarifying the government will not impose plan holiday upon expiry of three-year plan by the end of this fiscal year.
Related story
I will deliver on my election promises: PM Dahal
