Two-thirds of capital expenditure in the final trimester
KATHMANDU, July 9 :
More than two-thirds of capital expenditure is made in the final trimester of the fiscal year, government statistics shows.
Most of the times the tendency of finishing budget at the eleventh hour leads to low-quality, putting question mark on the objective of such projects.
Interestingly, government officials and contractors have their own reasons behind delay in capital expenditures. Instead of taking responsibility and taking initiative to improve development works, they blame each other for low-quality works.
Tulasi Prasad Sitaula, secretary of the Ministry of Physical Infrastructure and Transport, said lengthy administrative formalities were pushing development projects toward the end of the fiscal year. “Moreover, project managers do not want to take the risk of taking action against dishonest contractors. This is giving contractors leeway to delay the projects without specifying reasons,” he added.
In several cases, project managers are transferred due to highhandedness of contractors.
The existing laws that require government agencies to award tender to the lowest bidder is also creating problems in timely completion of development projects, according to the officials. Also, officials hesitate to take decisions fearing action by anti-graft bodies -- Commission for the Investigation of Abuse of Authority and National Vigilance Center.
Contractors, however, say they should not be blamed for delay in development projects. Jayaram Lamichhane, president of the Federation of Contractors Association of Nepal, said delay in budget approval pushes the projects toward the end of the fiscal year. “If there is foul play by the contractor, the government agencies every right to take action against them,” he added.
To ensure project approval in time, Sitaula suggested to the National Planning Commission to delegate the authority of approving development projects to the concerned ministry after specifying the expected results and timeframe of such projects.
All stakeholders say project approval at the very beginning of the fiscal year will ensure timely completion of development projects.
To expedite development works, Lamichhane asked the government to approve all tenders by mid-November and hand over ready to implement projects to the contractors. “Very often development projects are put in the budget without any preparation due to political pressure,” he said, adding, “And the same party will put pressure on the government to implement the project even at the eleventh hour fearing that the budget will be freeze if it is not started in the current fiscal year.”
Former vice chairman of the National Planning Commission Dipendra Bahadur Chhetri slammed the existing practice, saying that development works started at the eleventh hour won´t give desired results. “Monitoring agencies cannot monitor and audit such works as most of the times they are washed away by rainfall,” he added.
Chhetri also criticized the practice of transferring budget at the eleventh hour and implementing development works through consumers´ groups without studying the impact.
Source: Republica
