Despite low capital expenditure, ministries demand additional budget

KATHMANDU, March 12:

Though the ministries have failed to spend budget allocated to them for various projects, they have demanded additional budget almost equivalent to their capital expenditure in the first six months of the current fiscal year.

Finance ministry officials said the ministries have failed to implement projects but have demanded additional budget by creating fresh projects and programs, most of them proposed by political leaders.

Under-secretary at the finance ministry Nirmal Hari Adhikari said the ministries have demanded over Rs Rs 10 billion. In the first six months of the current fiscal year, the ministries have been able to spend only Rs 11 billion (13 percent) of the total Rs 85 billion allocated to them.

Total demand of additional capital on non-budgetary programs and projects stood at Rs 20 billion, which also includes additional budget for the running projects and programs.
Officials complained that ministries forward new projects and programs to increase capital expenditure but they have ignored budgetary programs and projects.

While making public the mid-term review report of the budget program two weeks ago, Finance Minister Ram Sharan Mahat had said that such non-budgetary programs and projects cannot be financed until there is a new a budget next year.

“We can only earmark additional budget for salary and allowance where necessary,” added Mahat.

Source: Republica