“The budget division of the ministry has committed it will not let these projects suffer from budgetary problems,” said Krishna Hari Baskota, who unveiled MoF´s action plan that commits full support to implement Action Plans on ´Good Governance´ and ´Economic Growth and Prosperity´ that Prime Minister Dr Baburam Bhattarai unveiled about a fortnight ago.[break]
However, officials concerned at the Budget Division of MoF themselves said the pledge by MoF is unrealistic and cannot be fulfilled, referring that the ministry would need to arrange non-budgeted fund in billions of rupees if PM´s action plans are to be executed.
Highlighting just a case of Kathmandu-Tarai Fast Track, which the PM committed to complete the track opening within a year, the source said if MoF is to arrange fund for that, it will instantly need Rs 2.5 billion.
“The Ministry of Physical Planning and Works (MoPPW), the executing agency, has already demanded us to release Rs 590 million on top of Rs 350 million allocated in the budget for acquiring land for track opening in Makawanpur,” said the source.
It has further communicated us its need for additional Rs 2 billion if it is to acquire land for track in Lalitpur. “There is no way we can arrange finances for just this one project, leave aside other projects cited in the PM´s Immediate Action Plan (IAP),” said the source.
The government has tagged Kathmandu-Tarai Fast Track, Mid-Hills Highway, regional airports in Bhairahawa and Pokhara, detailed project report of Budhi Gandhaki Hydropower Project within a year, second international airport in Nijgadh, Tamakoshi Hydropower Project and East-West Electric Railway as some of the projects of national pride.
Though 9 out of 11 projects cited as Projects of National Pride are already ongoing projects. Officials said arranging additional funds for all of them is simply impossible. “We will need to immensely transfer funds from other budget headings. It will be imprudent to do that because that will severely impact other programs,” said the source.
MoF action plan also commits to strictly recover matured loans, interest and royalty from public enterprises (PEs). Officials concerned termed this also unrealistic pledge, particularly as large PEs like Nepal Oil Corporation and Nepal Electricity Authority are still knocking at the doors of MoF for new loans to finance oil and electricity imports.
“Given such a situation, there is little chance of MoF succeeding in fulfilling this pledge either,” said the source.
MoF action plan also makes numerous pledges for implementing the government IAP like providing tax incentives for constructing cable cars, three-star hotels in sites of religious pilgrimage.
The action plan also cites 21 indicators that the MoF will use to monitor performances of 22 departments and institutions placed under it. “Chief of institutions that fail to secure 80 percent score on those indicators will face action,” said Baskota.
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