Govt failed to meet expenditure target last FY
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KATHMANDU, AUG 27 -
A delayed budget presentation in the last fiscal year took its toll on the government expenditure with the government spending just Rs 232.21 billion against the budgetary allocation of Rs 337 billion.
The figure does not include expenditure that donors spent for projects through direct payment. Government officials could not confirm total expenditure under the direct payment, but it is expected to remain at Rs 20-25 billion out of the total allocated Rs 31.75 billon. Direct payment means donors paying to supplier companies and contractors directly without going through the government channel.
According to a preliminary report based on the details of expenditure recorded on Aug 22 by the Financial Comptroller General Office (FCGO), the current expenditure stood at Rs 142 billion whereas capital expenditure at Rs 89.75 billion. Budget allocation for recurrent expenditure was Rs 190.31 billion and capital budget was Rs 129.53 billion.
According to FCGO officials who keep records of the government expenditure, the aforementioned figure includes around 90 percent of the total cash expenditure made by government offices in the last fiscal year.
“Of course, development budget expenditure remained sluggish in the last fiscal year due to delayed budget presentation,” said Finance Ministry Spokesperson Lok Darshan Regmi. “Awarding of contracts was delayed, and in some cases, obstruction to projects at local level also discouraged the spending,” said Regmi.
The FCGO record shows that a majority portion of the budget allocated from the government’s resources was spent, while spending from the source of donors remained sluggish. Of the total Rs 250.32 billion allocated by the government from its sources, Rs 203.77 billion was spent in the last fiscal year. However, only Rs 28.43 billion was spent form the expected donor resources of Rs 87.56. However, the figure will rise after the amount spent under the direct payment is included. Still, Nepal’s utilisation of foreign aid will remain disappointing.
Regmi, who looks after the monitoring department of the ministry, said there is a tendency among projects to spend from internal sources and making little effort to spend from donors’ sources. “It may be due to the requirement of maintaining proper accounting of spending made from donors’ sources,” Regmi added.
Whenever the budget has been presented late, development expenditure has been hit. In 2008-09, when the Maoist-led government brought the budget two months behind the schedule, capital expenditure remained at Rs 73 billion against the target of Rs 91 billion. In 2009-10, it remained at Rs 89 billion against the target of Rs 106 billion.
Given the public opposition to delayed budget presentation for its negative impact on the economy, political parties allowed the budget to be presented on time this year. However, discussion on the budget has not taken place so far due to house obstruction.
Posted on: 2011-08-27 09:47
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