Monday, March 15, 2021

No new project for next budget : Finance Ministry

 The budget for the next fiscal year 2021-22 is not going have any new project as the Finance Ministry is not going to entertain any projects that are not ready to start, and also to prioritise ongoing projects and programmes.

During a meeting with the secretaries of various ministries today, the Finance Ministry asked them not to include any new project and programmes for the next fiscal year due to lack of resources as the economy is tattered by the coronavirus pandemic, and also to prioritise the ongoing projects and programmes.

Due to resource constraint, the Finance Ministry also sought proposals for budget and programmes for the next fiscal year within the prescribed ceiling to the individual ministries. The National Planning Commission (NPC) has fixed Rs 1550 billion ceiling for the budget for the next fiscal year 2021-22. The secretaries, however, also complained of the tight ceiling, and asked to review the it.

Asking the secretaries of various ministries to present their proposal for the budget for next fiscal year 2021-22 by March 28, chief at the Budget and Programme Division under Finance Ministry Dhaniram Sharma said that the government is under pressure to manage resources. "Thus, present budget proposal not exceeding the ceiling given to the ministries by March 28."

The secretaries are also not very satisfied with procedure of the projects and programmes being incorporated in the fiscal policy. They complained of the adhoc system of including the projects and programmes in the budget, using the veto of ministers, but excluding the programmes and projects that have been prepared according to the format prescribed by the Finance Ministry and Planning Commission.

Due to resource crunch, the Finance Ministry has also asked the ministries to adopt austerity measures and control unnecessary expenditure.

The budget for the next fiscal year will be the last full-fledged budget for the incumbent government as it has already presented three budgets, and the another one will be election year budget. But it is still uncertain, whether the incumbent government will be able to bring the budget for the next fiscal year or new government will due to fast changing political scenario in the country in recent months.

1 comment:

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