Madhesh Province Government Revises Budget Implementation Policy for Development Projects

Janakpurdham. The Madhesh Province government has unveiled a new policy regarding budget implementation. Under the new guidelines, the provincial government will no longer allocate budget for small-scale projects costing less than 1 million rupees.

Following slow budget expenditure in the current fiscal year (2082/83), internal disputes had emerged within the government regarding the execution of projects through tenders, consumer committees, and sealed quotations.

A cabinet meeting held on Thursday evening resolved the dispute by establishing implementation criteria based on project costs.

According to provincial government spokesperson and Minister of Health and Population, Jangilal Ray, projects exceeding 2.5 million rupees will now be executed through the tender process. Projects ranging from 1 million to 2.5 million rupees will be conducted through sealed quotations.

It has been decided that projects under 1 million rupees will not be moved forward in their current form.

Previously, citing time constraints, the provincial government had decided to execute small development projects up to 2.5 million rupees through consumer committees. This decision was made due to the risk of funds freezing as the fiscal year neared its end and concerns that the tender process would not allow for timely completion. The government has now reversed that decision.

Sources indicate that following pressure from the federal government's seven-point governance reform agenda and public procurement standards, the provincial government has begun internal preparations to advance most projects through tender or quotation processes.

According to the provincial government, projects worth over 3 billion rupees are related to parliamentary constituencies. Furthermore, the total size of ministerial projects exceeding 1 million rupees is reported to be over 26 billion rupees. Of these, most projects above 2.5 million rupees have already entered the tender process, while the remainder will be advanced through sealed quotations.

Even after the second trimester of the current fiscal year, the provincial government has failed to spend even 15 percent of its development budget. With only about three and a half months remaining in the fiscal year, adopting the tender process poses a challenge to achieving physical progress, as the initial stages—including notice publication, applications, evaluation, agreements, and work orders—are expected to consume about a month and a half.

According to Minister Ray, projects under parliamentary constituencies will be executed through consensus via consumer committees, while ministerial projects will be advanced through tenders or sealed quotations based on their value.

According to the provincial government, projects worth over 3 billion rupees are related to parliamentary constituencies. Furthermore, the total size of ministerial projects exceeding 1 million rupees is reported to be over 26 billion rupees. Of these, most projects above 2.5 million rupees have already entered the tender process, while the remainder will be advanced through sealed quotations.

Minister Ray stated that the quotation process has been prioritized to save time while remaining within the standards of the Public Procurement Act. He noted that fragmented projects under 1 million rupees have been halted to discourage them, and those funds will be redirected toward completing unfinished projects and clearing outstanding payments.