KATHMANDU, NOVEMBER 24
Minister for Energy, Water Resources and Irrigation Kulman Ghising has stated that the delayed release of the national budget is one of the primary reasons for the low development expenditure recorded in the first quarter of the current fiscal year.
Minister Ghising, who also leads the Ministry of Physical Infrastructure and Transport and the Ministry of Urban Development, made the remarks while addressing today's meeting of the Public Policy and Delegated Legislation Committee under the National Assembly.
He argued that development initiatives have repeatedly encountered setbacks due to a budget freeze amounting to Rs 195 billion across the three ministries. Of this, approximately Rs 61 billion has been withheld under the Ministry of Urban Development alone. He noted, however, that first-quarter progress should still be viewed positively despite the budget being held in abeyance.
"If we exclude the frozen budget, our progress exceeds 20 percent. The current expenditure figures do not reflect the actual situation-they are distorted by the suspension of budget allocations. Similarly, the recent Gen Z protests have also hindered the progress of several projects," he said.
The Minister further stated that contractors who have repeatedly failed to meet deadlines have been penalised. Of the 269 projects currently under consideration for contract termination, 49 have already been formally terminated.
Acknowledging that some projects were proposed and approved in a haphazard fashion, the Minister said the government is prepared to cut funding for such boondoggles. According to him, the budget should instead be redirected toward building essential infrastructure, such as urgently needed bridges in districts like Jumla and Humla, along with other facilities vital to daily life.
He added that ongoing discussions are being held with the Ministry of Finance and the Prime Minister to resolve these issues. The Minister said that the design and construction of reconstruction structures are progressing swiftly, and that both long-term and short-term projects in energy, irrigation, roads, and urban development will now move forward at a faster pace.
(With inputs from Rastriya Samachar Samiti)
