CP (UML) Lawmaker Kandell Questions Finance Ministry's Budget Allocation and Spending

Kathmandu. CPN (UML) lawmaker Pushparaj Kandell has raised serious questions about the Finance Ministry's budget allocation and spending capacity.

Participating in the discussion on the budget for the fiscal year 2083/84 in the House of Representatives meeting on Tuesday, he demanded a review of the allocation system, stating that the Finance Ministry has a tendency to hoard budgets but is unable to spend them.

Lawmaker Kandell termed the Finance Ministry as a 'Super Ministry', stating that although it holds the key to the resources and means of all ministries, its performance is very weak. He presented the fact that Rs 8 Kharba 39 Arba 29 Crore has been allocated for the next fiscal year to be spent through the Finance Ministry, stating that past data shows the ministry's spending capacity is extremely low.

According to him, 77 percent of the budget was spent in the fiscal year 2081/82 and only 51 percent by the end of Chaitra in the fiscal year 2082/83. He claimed that the allocation of Rs 90 Arba under the 'Finance Miscellaneous' heading, while only Rs 8 Crore 77 Lakh (0.2 percent) was spent from the Rs 53 Arba allocated to this heading in the past, shows an intention to hoard the budget.

Objecting to the ministry's working style, he said, 'Even though the goal is to take the country's economy to 7 percent economic growth and control inflation at 6 percent, the Finance Ministry has not been able to mobilize itself accordingly.'

Mentioning that the situation of capital expenditure is disappointing, Kandell said that the capital expenditure being only 12 percent and the total expenditure being only 35 percent by the mid-term review of the current year raises a big question on the ministry's efficiency. 'If it cannot spend, why hoard the money?' he asked, complaining that even with an expert finance minister, there has been no improvement in the allocation style.

Lawmaker Kandell also objected to the provision in the Appropriation Bill that allows funds to be transferred from capital budget to current expenditure, i.e., principal-interest payments. He claimed that the past practice of not being able to cut the budget for national pride projects is not seen this time. He expressed concern over the low budget allocation for national pride projects and strategic highways for infrastructure development. He stated that the pace of infrastructure development will slow down, citing the reduction of the Karnali Highway budget to Rs 1 Arba from Rs 1 Arba 25 Crore in the previous year, the allocation of only Rs 17 Arba instead of the demanded Rs 57 Arba for the Kathmandu-Terai Fast Track, and the allocation of only Rs 2 Arba for the Pushpalal Mid-Hilly Highway.

He mentioned that there is a mismatch between the medium-term expenditure structure prepared by the National Planning Commission and the budget allocation of the Finance Ministry, and urged the government to increase the budget for the infrastructure sector and make the allocation process objective. He also accused the Finance Ministry of being preoccupied only with managing employee salaries rather than implementing the country's development plans.