Friday, June 14, 2013

Capital expenditure to be tied to performance

Finance minister Shankar Koirala, today, said that the absorptive capacity of capital expenditure in projects under priority one (P1) and priority two (P2) should be linked with performance evaluation.
Speaking at an evaluation meeting of P1 and P2 projects till the 10th month (mid-May) of the current fiscal year, held at the Finance Ministry, Koirala said that the programmes under priority projects also need to be revisited.
The minister also asked the project heads to concentrate on maximum output in the remaining days of the current fiscal year, though, the performance of the priority projects seem satisfactory.
"As crop insurance, livestock insurance and interest subsidy have benefitted low income groups, these programmes will get more budget in the fiscal policy for the next fiscal year," he added.
Programmes like financial sector cluster, microinsurance and youth self employment will directly benefit the targetted groups, said finance secretary Shanta Raj Subedi, on the occasion. "However, the impact of these programmes need to be studied before expanding them," he said, adding that youth self employment programme has failed to generate targetted employment. "It also needs to be seriously implemented."
The programme has been widely criticised for benefitting cadres of only a few political parties despite it being introduced to help unemployed youths create employment.
Subedi also asked the youth self employment programme chief to concentrate on result-based performance.
Likewise, the progress of P1 and P2 projects is an indicator of performance evaluation of the project heads, he said, asking them to achieve cent per cent results from the projects. In the meeting, chiefs of P1 and P2 projects apprised the minister of the progress and problems of the respective projects and programmes.

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