Kathmandu, Jan 23: Prime Minister Pushpa Kamal Dahal ‘Prachanda’ has said the upcoming fiscal year budget will focus on accomplishing incomplete projects arguing that conventional policy, programme and budget will not address the problems.
At a meeting held at the Office of Prime Minister and Council of Ministers (OPMCM) today as preparation for upcoming year’s policy, programme and budget, Prime Minister Dahal directed the subordinate authorities to make necessary preparation for completing the unfinished projects.
The Prime Minister drew the attention of the Ministry of Finance and National Planning Commission to be serious towards the trend of leaving old plans in limbo and adding new ones, which has resulted in weak performance and waste of huge resources.
“Development should be planned. There is a practice of demanding development without feasibility study and utility. It is unfortunate that there prevails lack of ownership, deficit of resource and freezing of appropriated budget. We should rise above the situation. All efforts should be put to complete unaccomplished projects”.
Though economic indicators are positive, they are not yet free from pressure, PM Dahal added. There are several anomalies in development works, he said, adding, “Let us rise above the conventional mindset and working style. Plans should be selected not to appease one and all but to accomplish the task of prosperity. There should be ‘breakthrough’ this time”.
At the meeting, Finance Minister Dr Prakash Sharan Mahat underlined the need of keeping austerity measures in view of shrinking revenue collection.
Chief Secretary of the government, Dr Baikuntha Aryal said with the amendment to the upcoming year’s policy, programme and budget-making there will be opportunity to draw conclusions based on adequate study and discussion.
On the occasion, Finance Secretary Dr Krishna Hari Puskar and department heads of the ministry delivered thematic presentations about the present status of the economy.
During the meeting, Prime Minister Dahal issued 16 directives. He said that arrangements should be made to finalize the ceiling of the budget by estimating the resources for the next financial year as well as for the next three years.
Before taking a final decision on the ceiling, the National Planning Commission and the Ministry of Finance will have to hold intensive discussions with all the ministries by February 3. After the ministry discussions are over a joint discussion with all the ministries should be held before February 7 to discuss the state of national priorities and national resources.
In this regard, Prime Minister Dahal said that projects of national pride should be ensured with necessary budget allocation as per to the approved procurement master plan. He budget to the projects and programs that have been given multi-year resource assurance should be allocated first.
The Prime Minister said that the budget should be allocated for projects for which preparation has been made, which has been entered into the project bank and that give returns. The ministries should stop the trend of sending budget for the projects and programs implemented by the province and local levels as conditional grants in the middle of the financial year.
The Prime Minister drew the attention of the Ministry of Finance to ensure that programs and projects that are contrary to the project classification standards are not kept at the federal level, that the practice of scattering the budget is completely put an end to and that the principles and priorities of the budget are presented in the parliament and that the ceiling of the ministry budget is also included in the schedule.
Prime Minister Dahal pointed out that the National Planning Commission and the Ministry of Finance should prepare budget including the issues raised in the parliament and the suggestions given by the ordinary Nepalis on the principles and priorities of the budget. He stressed on the need to build a revenue system to increase production and productivity, increase the scope of revenue, maintain low customs duties on raw materials and revise the tax structure.
Similarly, he said priority should be given to agriculture by implementing production-based subsidy system and programs should be prepared by coordinating programs of related ministries, and a program to involve the private sector as much as possible.
The Prime Minister said the ministries should be given full access to the budget system and they should finalize the programs and projects. The Ministry of Finance should stop adding projects and programs by itself.
In addition, Prime Minister Dahal emphasized that once a procedure or guideline has been created for a program or project it should not be developed again every year. #Nepal
