Poorly performing projects won't get more budget: Finance minister

KATHMANDU, May 25:

Minister of Finance Dr Ram Sharan Mahat has said the upcoming budget will allocate resources for the ongoing projects on the basis of their performance.

Talking to Republica at his office in the Ministry of Finance (MoF) on Sunday, Mahat said projects with good performance will get adequate resources in the new budget. “We will provide additional resources to such projects so that they can be completed in time,” he said, adding, “Investment alone can´t raise productivity, so we are advocating for investment with efficiency.”

Mahat also said the government cannot allocate more funds for projects that have reported slow progress. He further said the budget would prioritize the ongoing transmission line projects and allocate more funds for expansion of strategic road network.

The budget will prioritize Kabeli, Trishuli, Kaligandaki and Marsyangdi corridor transmission line projects, according to the finance minister.
The World Bank Group has made commitment to provide assistance worth Rs 600 billion for energy sector development.

“Private sector confidence has improved. It is expecting a lot from the government,” Mahat said, adding, “We have to diagnose all the problems that are blocking investment from the private sector.”

The finance minister said the signing of Power Trade Agreement with India will open new investment avenues in the hydropower sector.
Mahat also said the upcoming budget would be reform oriented and that the focus would be on fast decision making and completion of project in time.

The finance ministry is also initiating economic reforms in laws, regulations and administrative fronts. “More investment with efficiency increases the size of our economy, and that will create more economic opportunities and generate more revenue for the government,” Mahat said. “More revenue means will be able to invest in large infrastructure projects as well.”

Mahat also said the proposed second-tier reforms would create more space for the economy to grow. “The biggest challenge at the moment is to raise growth rate,” Mahat said, adding: “We should at least lift the growth rate to the South Asian average.”

The finance minister also said the new budget would give more emphasis to large infrastructure projects. “We will select only the well-studied and ready for implementation projects,” Mahat said, adding that such projects would be implemented by mobilizing domestic resources.

Source: Republica