Focus is on increasing capital expenditure: FinMin

KATHMANDU, Aug 21:

Minister for Finance Ram Sharan Mahat on Friday said that the government's focus is on increasing capital spending.

Commenting on the government's inability to spend developing spending at a 'National Dialogue on Accelerated Post-earthquake Reconstruction' in Kathmandu, Mahat said secretaries of all ministries have been given budget spending authority to ensure timely implementation of budgetary programs. "Partially, it is true that government lacks delivering capacity," Mahat said, adding, "However, this year we will make a difference by trying to spend majority of development budget in time."

Informing that project approval process has been shortened and that respective ministries can give project approval depending on the nature of project, Mahat said: "This new arrangement eradicates the difficulties in project approval process and other delays and helps in quicker implementation of the project. It leads to increase in development spending."

Mahat also said that the formation of Nepal Reconstruction Authority (NRA) would play a crucial role in increase country's capital expenditure by focusing on immediate and effective implementation of new reconstruction projects.

Speaking at the program, Govinda Raj Pokharel, CEO of NRA, pointed out three key challenges in the reconstruction process. "The reconstruction agency's main challenges are manpower management, coordination with stakeholders, and to ensure availability of construction materials," Pokharel said, adding, "We can start reconstruction process in real sense only after resolving these challenges."

Pokharel also urged for active participation of private sector in the nation rebuilding process. "Country's private sector has to come with better and innovative plans instead of involving themselves in activities like rebuilding houses," he added. He also cautioned against giving subsidies haphazardly, saying that it would develop the habit of dependency among people.

Addressing the program, Kenichi Yokoyama, country director of Asian Development Bank (ADB) for Nepal said that the role of strong political and bureaucratic leadership to accelerate post-earthquake reconstruction is a must. "Despite number of immediate progresses made, Nepal bears the challenge to create such political and bureaucratic leadership," Yokoyama said.

Informing that the government has to focus on implementation mechanism and operation norms of the commitments it has received through international communities, Yokoyoama said.

Similarly, Shekhar Golchha, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said the government should involve private sector in the reconstruction process.

Source: Republica