Most of the ministries have failed to increase their capacity to spend capital budget but they demand more resources.
"The ministries have failed to spend capital expenditure," said finance secretary Krishnahari Baskota. "Of the total capital budget of Rs 72.61 billion that is meant for development works, the ministries have been able to spend only 30.87 per cent to Rs 22.42 billion by the end of eighth month," he said, adding that the trend has revealed that the ministries have low capacity to spend on development works.
If the government spending on development works could not be expedited, it would hit overall economic activities. "The spending on development works will not only create employment but brings dynamism in the economy," the finance secretary said, adding that the government has — during the mid-term evaluation of the budget for the current fiscal year — projected the capital spending to come down to Rs 65 billion from the total capital expenditure of Rs 72.61 billion mentioned in the budget for the current fiscal year.
According to a report of a committee led by Constituent Assembly member Narayan Dahal, the government must spend 60 per cent of the capital expenditure by the end of ninth month, and the remaining 30 per cent should be spent in the remaining three months of the fiscal year, and that too, in the last month, the government could not spend more than 20 per cent. "The committee has prescribed the ceiling of expenses to check misuse of the budget by spending on the last month without productivity," Baskota claimed.
However, the tradition has it that the government spends the entire remaining budget in the last month without any productivity.
There are eight ministries — education, local development, physical planning and construction, health, home, defence, agriculture and irrigation — that have budget of over Rs 10 billion. Similarly, some 13 ministries have budget of over Rs 1 billion.
Among the 13 ministries that have over Rs 1 billion budget, the Foreign Ministry has spent 37.24 per cent of its capital expenditure on cash basis and the Office of the Prime Minister has spent the least at 0.08 per cent of its capital expenses on cash basis, according to the latest data of the Finance Ministry.
Showing posts with label Finance Minitsry. Show all posts
Showing posts with label Finance Minitsry. Show all posts
Thursday, April 5, 2012
Thursday, February 10, 2011
DPM Adhikari tables ordinance budget
Deputy Prime Minister Bharat Mohan Adhikari today tabled the ordinance budget before the Legislature Parliament.
After a long political dead-lock the outgoing finance minister Surendra Pandey had brought Rs 337.90 billion budget for the current fiscal year on November 20 -- four months late than the regular schedule -- through ordinance. The ordinance has to be indorsed by the Legislature Parliament by February 15 for its validity. The Parliament might also approve the ordinance but it will be herculian task for the government to live up to the budget promises.
Though, the newly elected government has formed a panel to amend the budget for the fiscal year 2010-11, it doesnot enjoy the luxury of time as the current fiscal year has already passed nine months and only five months are remaining for the new fiscal year to start.
However, the possibility of amendment could also be not neglected. "Budget is a means of expressing economic commitment of political parties in power," finance secretary Rameshwor Prasad Khanal said, adding that the bureaucracy will honour the will of the political parties towards the people and the country.
"We can accomodate the changes within the present budget, if needed," he said, being hopeful of the approval of the ordinance.
But other experts express that the ordinance will be passed as the preparation of the next budget for the fiscal year 2011-12 has already been started.
Experts doubted the caretaker government's ability to contain inflation under the target and acheive growth rate due to the political dead-lock that has fuelled the shadow economy that is as big as formal economy. They had also questioned government's capacity of spending on development activities, and that has come true. The inability of the government on development spending has sqeezed the liquidity from the market and the banks are facing the liquidity crunch.
"Though, country used to face liquidity crunch for almost three months -- November, december and January -- every year, this year it has been extended till now," said Parshuram Kunwar Chhetri, chief executive officer of the Bank of Asia Nepal.
The delayed budget has not only find it difficult to achieve growth target as there is no supporting fiscal measures, it has also created confusion in the private sector.
Though there has been Balance of Payment (BoP) deficit situation in the past too, this time the situation has continued for almost 16 months, which is in itself a record in the history.
The new deputy Prime Minister Adhikari, who is also projected as the finance minister in the Jhalanath Khanal government, will not find it easy this time to manage the economy though he has experience of being a finance minister.
Though the government will easily meet the revenue target of Rs 216.64 billion, it will be a herculian task for the government to spend Rs 129.54 billion development expenses.
After a long political dead-lock the outgoing finance minister Surendra Pandey had brought Rs 337.90 billion budget for the current fiscal year on November 20 -- four months late than the regular schedule -- through ordinance. The ordinance has to be indorsed by the Legislature Parliament by February 15 for its validity. The Parliament might also approve the ordinance but it will be herculian task for the government to live up to the budget promises.
Though, the newly elected government has formed a panel to amend the budget for the fiscal year 2010-11, it doesnot enjoy the luxury of time as the current fiscal year has already passed nine months and only five months are remaining for the new fiscal year to start.
However, the possibility of amendment could also be not neglected. "Budget is a means of expressing economic commitment of political parties in power," finance secretary Rameshwor Prasad Khanal said, adding that the bureaucracy will honour the will of the political parties towards the people and the country.
"We can accomodate the changes within the present budget, if needed," he said, being hopeful of the approval of the ordinance.
But other experts express that the ordinance will be passed as the preparation of the next budget for the fiscal year 2011-12 has already been started.
Experts doubted the caretaker government's ability to contain inflation under the target and acheive growth rate due to the political dead-lock that has fuelled the shadow economy that is as big as formal economy. They had also questioned government's capacity of spending on development activities, and that has come true. The inability of the government on development spending has sqeezed the liquidity from the market and the banks are facing the liquidity crunch.
"Though, country used to face liquidity crunch for almost three months -- November, december and January -- every year, this year it has been extended till now," said Parshuram Kunwar Chhetri, chief executive officer of the Bank of Asia Nepal.
The delayed budget has not only find it difficult to achieve growth target as there is no supporting fiscal measures, it has also created confusion in the private sector.
Though there has been Balance of Payment (BoP) deficit situation in the past too, this time the situation has continued for almost 16 months, which is in itself a record in the history.
The new deputy Prime Minister Adhikari, who is also projected as the finance minister in the Jhalanath Khanal government, will not find it easy this time to manage the economy though he has experience of being a finance minister.
Though the government will easily meet the revenue target of Rs 216.64 billion, it will be a herculian task for the government to spend Rs 129.54 billion development expenses.
Wednesday, February 2, 2011
Mid-Hill highway to be completed by 2013
In about two years time, Kathmandu will be connected to Biratnagar through the Mid-Hill Highway as the highway -- popularly known as Lokmarga -- will be ready for the vehicular movement.
"We expect the vehicular movement on the highway by 2013 January," said finance secretary Rameshwor Prasad Khanal, after returning from the field trip of Khurkot-Ghurmi stretch of the highway that is motorable but needs black-topping.
"The Khurkot-Ghurmi 60-km section of the Mid-Hill Highway has been opened in fifteen months," he said, adding that it will be black-topped by the end of next fiscal year.
"Similarly, the track of Ghurmi-Chatara 134-km section -- probably the last section -- will also be opened in another 15 months," he added.
The current fiscal year's budget has allocated Rs 1.21 billion for the opening of the track. "But the budget will not be problem," finance secretary said, assuring that the government is ready to allocate needed budget for the highway that is expected to bring a massive socio-economic and cultural changes in the millions of the lives of the people in the mid-hills. "Around seven million people will be connected to the national road network after the completion of the highway," according to him.
The 1,750-km long mid-hill highway project is one of the major physical infrastructure projects that will link 25 districts from Chiyo Bhanjyang of Panchthar district in the east to Jhulaghat of Baitadi district in the west.
The highway also passes through Kavre, Kathmandu, Pokhara and Baglung districts.
It is also expected to open new possibilities in the western hills for entrepreneurs. Similarly, the highway could to developed further more road network through North to South interconnecting it, after the completion.
A total of Rs 43.38 billion has been estimated for the construction -- including the cost for blacktopping, track opening, construction of 48 bridges and culverts and pavement works -- of the highway.
The 1,750-km-long highway will add some 600-km of new road and will upgrade and use 1,100-km of existing roads. However, unlike most of the existing roads in the hills, this highway will have double-lane.
According to the Department of Roads, as of 2007, the total length of roads stands across the country at 19,207 km.
"We expect the vehicular movement on the highway by 2013 January," said finance secretary Rameshwor Prasad Khanal, after returning from the field trip of Khurkot-Ghurmi stretch of the highway that is motorable but needs black-topping.
"The Khurkot-Ghurmi 60-km section of the Mid-Hill Highway has been opened in fifteen months," he said, adding that it will be black-topped by the end of next fiscal year.
"Similarly, the track of Ghurmi-Chatara 134-km section -- probably the last section -- will also be opened in another 15 months," he added.
The current fiscal year's budget has allocated Rs 1.21 billion for the opening of the track. "But the budget will not be problem," finance secretary said, assuring that the government is ready to allocate needed budget for the highway that is expected to bring a massive socio-economic and cultural changes in the millions of the lives of the people in the mid-hills. "Around seven million people will be connected to the national road network after the completion of the highway," according to him.
The 1,750-km long mid-hill highway project is one of the major physical infrastructure projects that will link 25 districts from Chiyo Bhanjyang of Panchthar district in the east to Jhulaghat of Baitadi district in the west.
The highway also passes through Kavre, Kathmandu, Pokhara and Baglung districts.
It is also expected to open new possibilities in the western hills for entrepreneurs. Similarly, the highway could to developed further more road network through North to South interconnecting it, after the completion.
A total of Rs 43.38 billion has been estimated for the construction -- including the cost for blacktopping, track opening, construction of 48 bridges and culverts and pavement works -- of the highway.
The 1,750-km-long highway will add some 600-km of new road and will upgrade and use 1,100-km of existing roads. However, unlike most of the existing roads in the hills, this highway will have double-lane.
According to the Department of Roads, as of 2007, the total length of roads stands across the country at 19,207 km.
Monday, January 3, 2011
Government fix sugarcane price at Rs 401 per quintal
The agitating sugarcane farmers called off their strike today after the government agreed to fix a minimum price.
A meeting in the Valley today afternoon in the office of care taker Prime Minister Madhav Kumar Nepal has fixed the price of sugarcane at Rs 401 per quintal.
According to Federation of Sugarcane Producers Farmers chairman Kapil Muni Mainali the strike was called off after the price was fixed.
The meeting has also agreed to set a Sugarcane Development Board.
The sugarcane farmers have been agitating after the industries declined to hike the price of sugarcane and forced them to sell sugarcane in low price. They were demanding Rs 421 per quintal, while the industries had agreed to pay not more than Rs 330 per quintal this year.
Last year‚ the government had fixed the rate of sugarcane price up to Rs 570 per quintal from a minimum of Rs 421.
Earlier, the administration had also clamped curfew in 13-km range of the East-West highway in Sarlahi after the farmers obstructed the highway to pressurise the government to fulfil their demands.
Sugarcane farming accounts for 70‚000 hectors of land in seventeen districts in the Terai region. Nepali market consumes 1.5 million tonne sugar per year but the domestic sugarcane is enough to produce only one million tonne, according to the farmers.
Every year, the country has been facing sugar shortage in the festival seasons pushing the price up. However, this year, the price has not seen whopping rise -- due to easy availability -- in price unlike last year.
According to the central bank, the price indices of sugar and sweets increased by 28.8 per cent in the first four months of the current fiscal year against an increase of 50.3 per cent in the same period last year.
The sugarcane farmers have been blaming the government for not being interested in addressing their problems, though the caretaker Prime Minister Nepal had directed the secretaries of Ministry of Finance‚ Agriculture and Cooperatives and Ministry of Industry to create an environment of consensus and fix price with agitating sugarcane farmers.
A meeting in the Valley today afternoon in the office of care taker Prime Minister Madhav Kumar Nepal has fixed the price of sugarcane at Rs 401 per quintal.
According to Federation of Sugarcane Producers Farmers chairman Kapil Muni Mainali the strike was called off after the price was fixed.
The meeting has also agreed to set a Sugarcane Development Board.
The sugarcane farmers have been agitating after the industries declined to hike the price of sugarcane and forced them to sell sugarcane in low price. They were demanding Rs 421 per quintal, while the industries had agreed to pay not more than Rs 330 per quintal this year.
Last year‚ the government had fixed the rate of sugarcane price up to Rs 570 per quintal from a minimum of Rs 421.
Earlier, the administration had also clamped curfew in 13-km range of the East-West highway in Sarlahi after the farmers obstructed the highway to pressurise the government to fulfil their demands.
Sugarcane farming accounts for 70‚000 hectors of land in seventeen districts in the Terai region. Nepali market consumes 1.5 million tonne sugar per year but the domestic sugarcane is enough to produce only one million tonne, according to the farmers.
Every year, the country has been facing sugar shortage in the festival seasons pushing the price up. However, this year, the price has not seen whopping rise -- due to easy availability -- in price unlike last year.
According to the central bank, the price indices of sugar and sweets increased by 28.8 per cent in the first four months of the current fiscal year against an increase of 50.3 per cent in the same period last year.
The sugarcane farmers have been blaming the government for not being interested in addressing their problems, though the caretaker Prime Minister Nepal had directed the secretaries of Ministry of Finance‚ Agriculture and Cooperatives and Ministry of Industry to create an environment of consensus and fix price with agitating sugarcane farmers.
Monday, June 8, 2009
Seven defaulters badgered into repaying
Seven black-listed big loan defaulters have been delisted from the defaulters' list. According to the finance ministry, there are now only 332 loan-defaulters.
Maitra Dev Pathak, Prabin Dev Pathak, Shant Dev Pathak and Bimala Devi Pathak repaid their loan to Nepal Bank Ltd whereas Birendra Kanaudia and Om Prakash Kanauda have rescheduled their loan with Rastriya Banijya Bank (RBB).
Earlier, the government formed a Wilful Defaulter Punishment Monitoring Committee on January 13 led by CA member Hari Rokka to recover bad debts of banks and other financial institutions. The committee listed listed 339 loan defaulters.
The Roka committee added 238 new loan defaulters to the old list of 109, making it a total of 339 defaulters. Of the 112 loan defaulters in the old list, three have repaid their loan.
Earlier, loan defaulters over Rs 50 million were in the list of big loan defaulters but according to the amended rule Rs 10 million and over defaulters are called big loan defaulters.
The Roka committee compiled a list of 355 defaulters -- 14 more than the those in the list published three months ago of the 339 defaulters. The committee has alleged that state-owned banks Nepal Bank Ltd (NBL), Agriculture Development Bank Ltd (ADBL) and Rastriya Banijya Bank Ltd (RBB) were reluctant to cooperate in identifying defaulters
ADBL submitted a list of 13 defaulters of above Rs 50 million in bad loans. The committee succeeded in forcing 13 defaulters -- 10 of NBL, two of RRB and one of ADBL -- to repay their loans. The committee is focusing on defaulters above Rs 50 million dating back to 5-6 years ago. Later, it will investigate default cases above Rs 10 million.
revenue collection looks up
KATHMANDU: The finance ministry said that it has been successful in collecting Rs 1.15 billion revenue till May 29. The capital expenditure -- spending on development works -- has also gone up to Rs 28.41 billion, an increase of 12.5 per cent in comparison to the same period last fiscal year. "Now the treasury surplus is at Rs 21 billion," said Shanker Adhikari, spokesperson for the finance ministry. However, of the total amount the government can spend only around Rs 16 billion as the remaining amount is alloted for local bodies, and due to lack of elected local bodies, it is frozen. Adhikari also said that the expert team of Dr Govind Bahadur Thapa, Dr Yubraj Khatiwada, Keshav Acharya, Pushparaj Rajkarnikar and Pushpa Kandel -- formed by the CPN-UML to help finance minister Surendra Pandey -- has started working on the budget preparation.
Maitra Dev Pathak, Prabin Dev Pathak, Shant Dev Pathak and Bimala Devi Pathak repaid their loan to Nepal Bank Ltd whereas Birendra Kanaudia and Om Prakash Kanauda have rescheduled their loan with Rastriya Banijya Bank (RBB).
Earlier, the government formed a Wilful Defaulter Punishment Monitoring Committee on January 13 led by CA member Hari Rokka to recover bad debts of banks and other financial institutions. The committee listed listed 339 loan defaulters.
The Roka committee added 238 new loan defaulters to the old list of 109, making it a total of 339 defaulters. Of the 112 loan defaulters in the old list, three have repaid their loan.
Earlier, loan defaulters over Rs 50 million were in the list of big loan defaulters but according to the amended rule Rs 10 million and over defaulters are called big loan defaulters.
The Roka committee compiled a list of 355 defaulters -- 14 more than the those in the list published three months ago of the 339 defaulters. The committee has alleged that state-owned banks Nepal Bank Ltd (NBL), Agriculture Development Bank Ltd (ADBL) and Rastriya Banijya Bank Ltd (RBB) were reluctant to cooperate in identifying defaulters
ADBL submitted a list of 13 defaulters of above Rs 50 million in bad loans. The committee succeeded in forcing 13 defaulters -- 10 of NBL, two of RRB and one of ADBL -- to repay their loans. The committee is focusing on defaulters above Rs 50 million dating back to 5-6 years ago. Later, it will investigate default cases above Rs 10 million.
revenue collection looks up
KATHMANDU: The finance ministry said that it has been successful in collecting Rs 1.15 billion revenue till May 29. The capital expenditure -- spending on development works -- has also gone up to Rs 28.41 billion, an increase of 12.5 per cent in comparison to the same period last fiscal year. "Now the treasury surplus is at Rs 21 billion," said Shanker Adhikari, spokesperson for the finance ministry. However, of the total amount the government can spend only around Rs 16 billion as the remaining amount is alloted for local bodies, and due to lack of elected local bodies, it is frozen. Adhikari also said that the expert team of Dr Govind Bahadur Thapa, Dr Yubraj Khatiwada, Keshav Acharya, Pushparaj Rajkarnikar and Pushpa Kandel -- formed by the CPN-UML to help finance minister Surendra Pandey -- has started working on the budget preparation.
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