Business»
Govt spending below budget
KATHMANDU, APR 13 -
The government will find it hard to spend the entire budget for the current fiscal year as the spending trend has been slow as of April 2. The government has been able to spend just Rs. 113 billion inclusive of recurrent expenditure Rs. 87 billion and capital expenditure Rs. 26 billion.
The government has a total budget of Rs. 286 billion for the current fiscal year. It aims to spend Rs. 106 billon for development purposes. The bleak picture of spending has been evident with the fact that the government has been able to sanction just Rs. Rs. 132 billion out of Rs. 286 billion when just three months remain for the completion of current fiscal year. An additional Rs. 10 billion has been sanctioned for repaying foreign loans.
The government in its mid-term review of the budget has stated that it could spend just Rs. 85 billion for development purposes. "It is difficult to meet even that target if the current pace of spending continues," said Krishna Hari Baskota, revenue secretary. For the last few years, the government's failure to spend has been a chronic problem, especially in the development field. There had been capital expenditure of just Rs. 73 billion against budgetary provision of Rs. 91 billion last year.
In the mid-term review of the budget, the government has admitted that there was no sign of significant improvement in the spending pattern although some improvements have been witnessed this year.
The three-yearly budget estimate and multi-year bidding system introduced this year may have positive impact in the upcoming years, according to the budgetary review.
However, an official at the finance ministry said the there has been uncontrollable spending for foreign trips of VIPs, distribution of donations as relief measures, medical bills and other unproductive expenditure.
Any government agency should take the approval of the finance ministry for any type of non-budgetary expenditure such as the spending for financial relief, foreign country trip, and creation of new vacancy, according to the review of the budget. "On one hand, the approval of ministry is not sought, on the other decisions are taken even in cases that the ministry disapproves."
Below Budget
Govt spending just Rs. 113 billion in nine months against Rs. 286 allocated for current fiscal year
Capital expenditure just Rs. 26 billion against Rs. 106 billion allocated
Capital expenditure estimate slashed
Posted on: 2010-04-14 07:11
Headlines
Advertisements
