Karnali Province Government Struggles with Budget Execution After Mid-Year Review

Surkhet. Even after crossing the first mid-year review, the Karnali Province Government has failed to make progress in budget implementation.

According to the budget execution data up to the end of Magh provided by the Provincial Comptroller's Office, only 16.14 percent, equivalent to NPR 5 billion 32 crore 40 lakh 56 thousand, has been spent so far.

The government had presented a total budget of NPR 32 billion 99 crore 66 lakh 55 thousand for the current fiscal year (082/083). The government still has a remaining budget of approximately NPR 27.67 billion.

The government had spent NPR 4 billion 53 crore 34 lakh 33 thousand 283, or 13.74 percent of the total budget, by the mid-year review period, the end of Poush, said Lalit Thapa, an accounting officer at the Provincial Comptroller's Office.

The province spent only 2.4 percent of the amount during the entire month of Magh, according to the Provincial Comptroller's Office.

Details of the provincial government's total budget expenditure up to the end of Magh

• Dire Situation for Capital Budget Spending

The pace of development (capital) budget implementation in Karnali this year is even more dismal. In 7 months, only 9.44 percent of the total budget, or NPR 1.88 billion, has been implemented, which is the weakest performance in the last two fiscal years.

During the mid-year review, Chief Minister Yamalal Kandel had directed all ministers, secretaries, and office heads to accelerate budget implementation. However, the government has failed to find its rhythm in development budget execution.

The government spent only 1.44 percent, or NPR 31 crore, during the month of Magh, after spending 7.90 percent, or NPR 1.57 billion, by the end of Poush (mid-year review period).

A budget of NPR 19 billion 98 crore 27 lakh was allocated for development (capital expenditure) in the current fiscal year. Concern is growing over how much the government will spend in the remaining 5 months, having failed to implement even NPR 2 billion in development budget in 7 months.

“There was a 'Janjg' movement at the beginning of this year, which prevented projects from being awarded contracts on time,” said an employee of the Ministry of Finance, “After that, the government could not regain its momentum for a long time.”

During the same period, current expenditure increased to 27.24 percent, or NPR 3.29 billion. Administrative expenditure, which was 23 percent by the end of Poush, rose to 27 percent during the month of Magh.

• Opposition Claims Government Has Already Failed

The main opposition party, the CPN (UML), has stated that the government has completely failed in budget implementation. Krishna Bahadur GC, Chief Whip of the CPN (UML) Parliamentary Party, said, “They are showing serious indifference.”

GC stated that the budget execution status is weaker than in previous years. Arguing that necessary acts, regulations, policies, and procedures have not been established, he claimed that the Congress-UML government has become completely incapable of functioning.

Meanwhile, Chief Minister Yamalal Kandel has recently been more involved in party activities than in government functions. Stakeholders suggest that the role of the provincial government has become further weakened as he has started spending more time on election campaigning.