Final draft of the plan awaits cabinet approval

Kathmandu, November 26:

National Planning Commission (NPC) members held a meeting with Prime Minister (PM)

Girija Prasad Koirala today to pave the way for the endorsement of the final draft of the three-year interim plan. As the PM is also the chairman of the NPC, his consent is needed to forward the draft to the cabinet for approval.

According to Jagdish Chandra Pokhrel, vice-chairman of the NPC, the draft will now be forwarded to the government for the approval of the cabinet.

The plan is supposed to be in place until a new government is formed after the constituent assembly (CA) election. This year’s budget incorporated some elements of the plan, but the full plan was prepared only recently. Pokhrel said the plan was a consensus document as all the political parties had agreed to its content. They should assist in its implementation, he said.

The main policies in the plan are creating a framework and making legal preparations for federalising Nepal, adopting a free market economy and creating public-private partnership for economic development, poverty alleviation and making the economy more inclusive for deprived groups.

Pokhrel said new approaches to implement the plan were discussed with the PM during the meeting. The PM said he will issue a directive to all the ministries to work in accordance with the plan, Pokhrel said. The NPC will also monitor the implementation of the plan. “Now, apart from their existing responsibilities, NPC members will also have to look after specified districts and ensure that the plan is being implemented smoothly in their areas.”

Pokhrel added that the implementation modality of the plan had been reviewed and some procedures had been changed. “We face some problems in implementing our plans. For example, there is a tendency of contractors to bid very low and disappear shortly once work starts. They later claim variance too. That is why many projects have not been completed for years. We are looking at these problems and are trying to come up with better financial rules.”

The main threats to the plan, according to Pokhrel, are the worsening law and order situation and low economic growth. He explained that village secretaries should be in place to implement the plan.

“But the situation in the Tarai is worrying. Also, the Local Development Officers (LDOs) are controlling all development activities and people’s participation is lacking. We need to change this,” Pokhrel said.

Since the interim plan is based on revenue growth projections, the spending power of the NPC will be severely hampered if the projected growth is not achieved, Pokhrel said. Recent Finance Ministry statistics show that non-tax revenue of the government has not increased as per expectations. Pokhrel said it is too early to comment on the matter, but if this continues, the NPC will need additional foreign assistance to implement the plan.