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BE PRACTICAL



The Kathmandu Post
22 April 2016
BE PRACTICAL

It seems that the National Planning Commissions (NPC) has finally realized that the programme budget to be provided to various ministries for the coming fiscal year needs to be reduced in view of the massive amount of funds that may be required for the post-quake reconstruction programme (“NPC proposes budget reduction” 20 April, Page 1). Otherwise, there was a tradition of increasing yearly budget of every ministry by approximately ten percent without an appropriate mechanism.

Top down programming and budgeting approach is still in practice in the government, forcing its local level organizations to either haphazardly spend the allocated programme budget or fail to spend allocated budget fully and let an enormous amount lie unspent towards the end of the fiscal year. This process has also led to spike in the amount of irregularities at government agencies, according to the recently published audit report of the Department of Auditor General. The government lacks proper mechanism to recover such amounts which continue to accumulate resulting in a huge financial loss.

However, most of the ministries are as usual exerting pressure on the NPC to increase their annual budget for the next fiscal year. In addition, the Oli led government has created four new ministries which has increased huge the financial burden on the national economy. It seems that the donor organizations have also slowed down their commitment to look at the slow pace of government’s reconstruction programme.  The seven month long Madhes unrest and the four month long Indian unofficial trade embargo were some of the contributing factors for generating less revenue. This has directly or indirectly hit the national economy, forcing the NPC to unusually reduce the next year’s programme budget. This still seems to be a more realistic approach than arbitrarily increasing the annual programme budget.

Rai Biren Bangdel
Maharajgun
http://kathmandupost.ekantipur.com/printedition/news/2016-04-22/voice-of-the-people-20160422090450.html

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