MoF issue guidelines to expedite capex
KATHMANDU: To tackle the persisting problem of slow capital expenditure, the Ministry of Finance (MoF) has issued time bound action plan which allocates timeframes for ministries to carry out the development works. The guidelines based on provisions of the Appropriation Act instructs the ministries and implementing bodies to prepare procurement plan, detailed design of the project, cost estimation and issue tender notice within the first month of the fiscal year and have to award tender within the first quarter of the fiscal year.
Furthermore, 29 per cent of the allocated budget has to be spent in the first quadrimester, 67 per cent by the end of the second quadrimester and remaining by the end of the fiscal year.
The guideline will also bring regularity in the spending spree of the implementing units which tend to surge in the last weeks of the fiscal year. The government spending amounted to Rs 604.64 billion in the first 11 months of the fiscal year but it rose to Rs 823.94 billion by the year’s end. In the last month of the fiscal year 2016-17, the government spent 218.85 billion.
Government’s plan to hold provincial and general election in current fiscal year might affect the implementation of the development works. So, the introduced guidelines will try to prosecute the planned task from the beginning. Ramsharan Pudasaini, Spokesperson for MoF says, “These guidelines will make the government mechanism more efficient. Projects won’t be delayed because the guideline restrict single contractor from taking additional contracts at the same time. Also quality of completed work will be evaluated by vigilance agencies before releasing the payment to contractors. Furthermore, MoF is ready to consult with any ministry facing the problem of slow