23 percent of foreign aid commitment off-budget
KATHMANDU, May 7:
Around 23 percent of total foreign aid commitments received in the first nine months of the current fiscal year is off-budget.
Of the total foreign aid commitment of US$ 675.24 million in the first nine months of 2013/14 till mid-March, only $516.38 million is coming through the government´s budget system.
Almost all the assistance received from multilateral donor agencies like the World Bank, Asian Development Bank and European Investment Bank have been channelized through budget, according to Ministry of Finance (MoF). However, a huge chunk of assistance from bilateral development partners is being spent out of the country´s budget system.
Norway leads the list of donor countries in terms of off-budget assistance. Norway has made aid commitment of $14.79. Of the amount, $14.13 million is going on off-budget funding. Norway has offered to assist in six projects -- Support to Nepal´s Transition through Improved UN Coherence, Support to Transitional Justice in Nepal, Governance Training to Local Government in Nepal, Strengthening Rule of Law and Human Rights Protection System, Using Media to Promote Regional Peace and Development, and Funding for Neal Peace Trust Fund.
Similarly, UK government´s Department for International Development (DFID) is providing $7.13 million of the total commitment of $185.42 million in off-budget providing.
Denmark has made the commitment of $7.37 million for an inclusive growth program. All Danish support will be spent through budget system, according to MoF.
Likewise, the German Agency for International Cooperation (GIZ) has resumed its assistance to Nepal. It is providing $2.07 million for Sub-National Governance Program and $ 2.21 million for Nepal Peace Trust Fund, according to MoF.
The United States Agency for International Development (USAID) has made assistance commitment of $6.05. It is investing the entire amount on off-budget programs. Likewise, Swiss Agency for Development and Cooperation has made aid commitment of $ 42.16 million of which $ 3.16 million is being spent on off-budget program.
Nepal had received $960 million foreign aid disbursement in 2012/13. Around 36 percent of the assistance was received on off-budget projects.
“Technical assistance and assistance received in turnkey projects have also been recorded under off-budget,” Madhu Kumar Marasini, chief of International Economic Aid Coordination Division under MoF, told Republica.
Until the first nine months of the current fiscal year, the government has received commitment of $435.35 million in grants, $ 175.75 in million loans, and $64.13 million technical assistance.
Source: Republica
