Nepal's Infrastructure Secretary Stresses Sectoral Prioritization in Budget Formulation

 Kathmandu. Secretary of the Ministry of Physical Infrastructure and Transport, Keshav Kumar Sharma, stated that it is essential to determine sectoral priorities when formulating the budget.

Speaking at a Budget Watch program organized in collaboration with the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), he emphasized the need to set priorities not only sectorally but also within those sectors during budget preparation.

He said, 'When the government prepares the budget, it must focus on setting priorities given the limited resources. Currently, we see health insurance as a priority, building health posts, and energy and roads seem to be priorities everywhere. Sectoral priorities must now be included in the budget. We should designate five years as the year for electricity development, the next five years for achieving road access, and the next five years as the literacy year. For instance, is the Suryavinayak-Dhulikhel road more urgent, or is building a bridge in a village where people are dying the priority? That needs to be distinguished.'

Similarly, Ganesh Karki, President of the Independent Power Producers' Association Nepal (IPPAN), stated that investment is stalled because the government is delaying opening Power Purchase Agreements (PPAs) for projects totaling 5,000 MW.

At the program, Ramkrishna Khatiwada, CEO of Nepal Infrastructure Bank, mentioned that the private sector cannot move forward unless government spending increases. He said, 'The private sector cannot advance unless the government increases spending. Due to the government's inability to spend, liquidity is piling up.'

Birendra Raj Pandey, President of the FNCCI, stated that industrial development is indispensable for overall economic development. He said, 'Industrial development is indispensable for overall economic development. Effective implementation of the matters discussed in the budget regarding industrial development is necessary. We must focus on industrial development and move forward by making policy reforms accordingly.'