Program funding system
The Himalayan Times
29
November 2012
The existing funding system in Nepal in relation to the development projects
requires to be revisited in terms of its effectiveness and traditional
standard. This system lacks accountability and transparency. As a result, a big
portion of funds that are disbursed for the development projects are
misappropriated thus hampering the quality achievement of such projects. Also,
the targeted beneficiaries of the project are deprived from the intended objectives.
It was great opportunity for me and should also be for other readers to read
Krishna B. Joshi’s article “Performance-based funding” (THT, 27 Nov, Page 9)
that clearly depicts the picture of existing funding system of development
projects in Nepal.
Unless the program budgeting system (PBS)
is properly practiced and implemented for community based development projects,
there remains to be less chances of its real impact at the grass root level.
For program budgeting, every detail of each program activity is to be properly
identified and enlisted against the required amount of budget and should be
reflected accordingly in the annual plan. This system will demand the designation
and implementation of performance-based monitoring (PBM) system to ensure the
achievements of both quantitative and qualitative indicators. Performance based
monitoring system is the most preferred management tool in order to assess the on-going
implementing status of each planned activities. If the PBM system is properly
designed and put in place, the performance based funding (PBF) system become
much easier to follow and implement and vice verse.
Both the PBF and PBM systems should
complement each other at the program designation and implementation level. Both
the systems require and demand extensive participation of all the concerned development
partners, be it at the VDC level, District level and at the Centre level. These
systems ensure ownerships and accountability of the responsible planners, implementers
and beneficiaries towards such development projects. However, lack of proper
trained human resources in these systems could remain to be the bottleneck in
properly implementing both PBF and PBM systems. If these systems are properly followed
and implemented in the government and donor funded development projects,
maximum benefits to the targeted population could be delivered ensuring
ownership and accountability of all the concerned stakeholders towards such
projects.
Rai Biren Bangdel
Maharajgunj, Kathmandu
