Despite timely budget for the current fiscal year 2013-14, the government failed to expedite the capital expenditure that could have created employment, encourage private sector to borrow and invest, and above all propel the economic growth.
The capital expenditure could not be expedited despite timely budget for the current fiscal year and approval of the programmes, said the finance minister Shankar Prasad Koirala, speaking to the journalists here today.
The government has been able to spend Rs 13.71 billion capital expenditure by yesterday.
The minister said that the Finance Ministry alone is not responsible for the lower capital expenditure. "The line ministries have to take ownership and expedite the development works for the capital expenditure," he said, adding that the incumbent government has, however, been successful in managing the transition. "We have also succeeded in making apolitical budget. The private sector's is walking hand-in-hand with the government."
However, chief advisor to the Finance Ministry Dr Chiranjivi Nepal expressed surprise on private sector's 'wait and watch' mood despite the timely budget in the current fiscal year after four years. "The incumbent government has accepted the private sector as a engine of economic growth," he added.
If the government cannot increase its appetite for capital expenditure, there is no need to accept the foreign aid, Nepal said, asking for the review of consumption capacity of the country.Finance secretary Shanta Raj Subedi, on the occasion, urged to bring the fiscal policy in June. "So that the budget could come to implementation from mid-July," he said, adding that the state of capital expenditure would not improve in the current calendar of budgeting. "The line ministries have to take responsibility for the development works."