Finance minister emphasizes efficient budget allocation in meeting with ministry officials

April 5, 2024, 05:03:49 PM |

KATHMANDU: Finance Minister Barshaman Pun has reiterated the government’s commitment to allocate budgets exclusively to projects capable of efficient utilization, aiming to enhance capital expenditure and foster economic growth.

During a meeting held at the finance ministry on Thursday, Minister Pun conveyed this directive to secretaries of various ministries and security chiefs. He emphasized the imperative for government agencies to enhance their capacity to effectively utilize allocated funds, citing concerns over suboptimal capital expenditure across ministries, with the exception of the Ministry of Energy, Water Resources, and Irrigation, which recorded over 40 percent capital expenditure.

Highlighting the importance of competent budget allocation, Minister Pun underscored the adverse effects of limited capital expenditure and poor spending capacity on employment creation and capital formation.

He emphasized that such inefficiencies will not be tolerated in the upcoming fiscal year, with the finance ministry contemplating allocating budgets solely to projects demonstrating the capability to utilize funds effectively.

Furthermore, Minister Pun announced stringent measures to deter the allocation of funds to unrealistic projects in the upcoming fiscal year, emphasizing the need for prudence in budget planning to ensure optimal utilization and impactful outcomes.

Addressing concerns over delayed budget implementation and its repercussions on the economy, Minister Pun acknowledged the challenges posed by limited capital spending and declining revenue collection.

However, he expressed optimism regarding gradual improvements in the external sector, highlighting the government’s ongoing efforts to address economic challenges and promote sustainable growth.

The finance minister’s directives underscore the government’s commitment to fostering fiscal discipline, enhancing budget efficiency, and driving economic development through strategic allocation and utilization of financial resources across various sectors.

Fiscal Nepal |

Friday April 5, 2024, 05:03:49 PM |