Budget allocation for key infrastructure projects not sufficient, say lawmakers

KATHMANDU, July 16:

Ruling coalition partner CPN-UML as well as opposition parties have said that budget allocation for major infrastructure projects would be insufficient.

They also said budget allocation for reconstruction has been made in a haphazard manner without conducting any study.

Speaking at a discussion on budget unveiled on Tuesday, former Prime Minister and UCPN (Maoist) leader Baburam Bhattarai termed allocation of Rs 3.37 billion for Budhi Gandaki Hydropower Project as peanuts.

The estimated cost of the 1,200-megawatt project is Rs 250 billion. The project is said to be of strategic importance in managing electricity supply in the long run.

'The government should have at least earmarked budget needed for land acquisition,' added Bhattarai.

He also said the budget allocated for Pushpalal Mid-Hills Highway is "too little". 'The project needs Rs 40 billion, but the government has allocated meager Rs 2 billion. At this rate, we will have to wait at least 20 years to complete the national-pride project,' added Bhattarai.

The former finance minister also said that budget allocations for Koshi, Gandaki and Karnali corridor road projects were also insufficient. 'Budget allocation for petty projects cannot make any contribution to economy. The budget has failed to create a basis for major shift in economy through reconstruction works,' he added.

Similarly, former finance minister and CPN-UML lawmaker Surendra Pandey said his party was not consulted in the budget preparation process. "The budget allocation of only Rs 1 billion, including the Rs 500 million to be invested through Indian line of credit (LOC), for Kathmandu-Tarai Fast Track Road is too little. Involvement of Indian assistance in the project might create unnecessary problems,' he said, adding that the government should develop the project by mobilizing internal resources. 'The government should have allocated budget to the project from the current fiscal year"s cash reserve.'

The project is estimated to cost more than Rs 100 billion.

Jitendra Narayan Dev of Madheshi People"s Rights Forum-Democratic welcomed the budgetary allocation for the Postal Highway. 'The project should be completed at the earliest as it holds key for agricultural development in Tarai districts,' he added.

"NO PLANNING FOR RECONSTRUCTION"

Lawmakers also said the government hasn"t made any convincing plan for reconstruction and rebuilding. Former PM Bhattarai said no preparation has been made for formation of reconstruction authority to implement reconstruction projects. 'We cannot expect line ministries to implement reconstruction works. The budget did not take reconstruction works seriously,' he added.

Bhattarai also said that the Post-Disaster Needs Assessment (PDNA) has not assessed the damages thoroughly.

Kamal Thapa, president of Rastriya Prajatantra Party-Nepal, also said there is no clear definition of projects to be implemented through reconstruction budget.

Source: Republica