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Despite Failing to Spend, Ministries Demand Huge Chunk of Budget

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Despite Failing to Spend, Ministries Demand Huge Chunk of Budget
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April 26: Despite low capital expenditure, different ministries have demanded huge budget from the government for the next fiscal year.

It has been learnt that the Ministry of Physical Infrastructure and Transport, and the Ministry of Industry, Commerce and Supplies have demanded a total of Rs 96.82 billion from the government for the next fiscal year.

The Ministry of Physical Infrastructure and Transport has demanded Rs 95.36 billion, while the Ministry of Industry, Commerce and Supplies has demanded a total of Rs 1.46 billion from the government.

According to a top-level official at the Ministry of Physical Infrastructure and Transport, a huge chunk of budget is necessary to develop the infrastructure such as roads, railway, tunnels, among others. In the current fiscal year, the ministry has allocated more than Rs 100 billion for the development of different infrastructural projects in the country. However, the capital expenditure of the ministry is about 50 percent, while the recurrent expenditure is 85 percent.

The data of the Office of the Attorney General (OAG) shows that the capital expenditure of the ministry stands at 53 percent. A source at the ministry told New Business Age that it has demanded huge chunk of budget from the government citing construction of Kathmandu-Terai Fast Track, Metro Rail and Mono Rail, Madan Bhandari Highway, Mid-Hill Highway, among others. However, the ministry has failed to spend budget on these projects in the current fiscal year.

In the current fiscal year, a total of Rs 15 billion had been allocated for the construction of the Kathmandu-Terai Fast Track, but the ministry has been able to spend only Rs 2.15 billion, the data of OAG shows. Also, a total of Rs 4.50 billion had been allocated for Rail, Metro Rail and Mono Rail, but the ministry was able to spend only Rs 620 million.

Similarly, the Ministry of Industry, Commerce and Supplies has also demanded a huge chunk of budget for the development Special Economic Zone (SEZ), establishment of Industrial Village, management of public corporation, among others. In the current fiscal year, a total of Rs 7 billion had been allocated for the ministry. However, the data of the OAG shows the capital expenditure of the ministry stands at only 23 percent.       

 

 

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