For instance, Ministry of Physical Planning and Works (MoPPW) -- the agency getting biggest share of the budget -- has strongly demanded allocations of Rs 60 billion, though its ceiling for new budget is about Rs 52 billion. [break]
“Story of other ministries are no different either,” said a source at Budget Division of Ministry of Finance (MoF).
But what is the spending situation of ministries that bagged capital budget of more than Rs 1 billion in the first nine months of this fiscal year? A reality check by Republica discloses that spending capacity of 9 large ministries (that recieved capital budget of more than Rs 1 billion) stood quite contrary to what they are demanding for the upcoming budget.
Data compiled by MoF shows, MoPPW that was assigned to spend capital budget of Rs 34.5 billion in the current fiscal year has spent mere Rs 8.5 billion in the first nine months, which is just 25 percent of the development allocations.
Worst performer among these nine ministries is Ministry of Agriculture and Cooperatives (MoAC) spending mere 17 percent of the total allocated capital budget in nine months. The Ministry was entrusted to spend Rs 1.4 billion this year, but by the end of nine months it has spent just Rs 250 million.
Ministry of Local Development (MoLD), which is responsible for steering development works at the local level, was the second worst performer. Its spending for nine months stood at 20 percent (Rs 1.5 billion) of Rs 7.5 billion capital budget allocated to it.
Capital spending of Ministry of Peace so far stood at 21 percent of total allocations, while Ministry of Home and MoF itself stood at 22 percent and 23 percent respectively. Spending of Ministry of Health, a crucial ministry to enhance public access to basic health facilities, spent 25 percent (Rs 1.25 billion) of total capital allocations of Rs 4.5 billion.
The best performer is Ministry of Irrigation. But even its spending stood at just 40 percent (about Rs 4 billion) of Rs 9 billion.
“Interestingly; these Ministries despite failing to make capital spending have pushed us to allow them to transfer budget or provide them additional budget in billions of rupee for distributive programs,” said a MoF source.
With deadline for Constituent Assembly´s end approaching fast, sources said MoF is presently facing severe pressure from the lawmakers as well as different ministers for fund to be spent in their respective constituencies.
“Those who can influence have already got finance minister to endorse their proposals and walked away with money in the range of Rs 1 million to Rs 20 million. Unfortunate for us the pressure is only mounting,” said the source.
Finance Secretary Krishna Hari Baskota refused to elaborate on growing pressure for distribution of fund. Nonetheless, he said, “it was a normal phenomenon that happens every year in the final quarter of the fiscal year.”
On capital spending recorded for the first nine months, Baskota said it stood at just over 34 percent of annual allocation of Rs 72.61 billion.
As for the resources, he informed that the government had mobilized revenue of Rs 172.09 billion, falling short of target by Rs 2.22 billion) over the first nine months of 2011/12.
The shortfall was attributed to lack of repayment of principal and interest by public enterprises like Nepal Oil Corporation and Nepal Electricity Authority and low import and trading of vehicles.
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