Govt should increase capital expenditure
KATHMANDU:
The government should focus on boosting capital expenditure, according to vice-chairman of National Planning Commission (NPC) Deependra Bahadur Kshetri speaking in an interaction here in the valley.
“Our recurrent expenditure is higher than capital expenditure,” he said, adding that it will not lead the country towards prosperity.
In the fiscal year 2010-11, the capital expenditure accounted for only 67.8 per cent of the annual budget estimate. Similarly, the recurrent expenditure rose by 13.5 per cent to Rs 166.01 billion compared to an increase of 22.3 per cent a fiscal year ago, whereas the capital expenditure went up by 15.7 per cent to Rs 87.89 billion compared to an increase of 21.1 per cent a fiscal year ago. Regular administrative expenses like salaries come under Recurrent expenditure and development expenses come under capital expenditure.
The government should increase capital expenditure for economic growth and employment generation, he said. “If the government doesn’t act towards increasing development budget and allocating sufficient fund for the infrastructure development, the country cannot achieve its growth target.”
He also promised that the National Planning Commission will not bring additional projects out of red book. “It will expedite its effort to complete projects that have already been started but have not completed yet,” he said, adding that the NPC will sincerely assess why projects under construction have not been completed within the stipulated time.
Source: THT
The government should focus on boosting capital expenditure, according to vice-chairman of National Planning Commission (NPC) Deependra Bahadur Kshetri speaking in an interaction here in the valley.
“Our recurrent expenditure is higher than capital expenditure,” he said, adding that it will not lead the country towards prosperity.
In the fiscal year 2010-11, the capital expenditure accounted for only 67.8 per cent of the annual budget estimate. Similarly, the recurrent expenditure rose by 13.5 per cent to Rs 166.01 billion compared to an increase of 22.3 per cent a fiscal year ago, whereas the capital expenditure went up by 15.7 per cent to Rs 87.89 billion compared to an increase of 21.1 per cent a fiscal year ago. Regular administrative expenses like salaries come under Recurrent expenditure and development expenses come under capital expenditure.
The government should increase capital expenditure for economic growth and employment generation, he said. “If the government doesn’t act towards increasing development budget and allocating sufficient fund for the infrastructure development, the country cannot achieve its growth target.”
He also promised that the National Planning Commission will not bring additional projects out of red book. “It will expedite its effort to complete projects that have already been started but have not completed yet,” he said, adding that the NPC will sincerely assess why projects under construction have not been completed within the stipulated time.
Source: THT
