The capital budget, a fundamental aspect of economic growth, often goes largely unspent even as Nepal has been planning to graduate from a league of least developed countries to a developing country in about eight years from now. The low level of expenditure of the capital budget has slackened the pace of development. This under-spending has instead augmented the rate of poverty, unemployment and illiteracy.
Among the many reasons for the situation, a centralized authorization process, cumbersome procurement procedures, flexible virement rules and absence of accountability are the glaring ones.
The fiscal budget is broadly segregated into recurrent and development expenses. Various analyses have shown that implementation of the recurrent expenditure is happens as allotted but the capital budget execution lags far behind.
The budget execution commences with the endorsement of Appropriation Bills in the Parliament. As an ideal budget spending time, the budget should have been approved and implemented from the start of the fiscal year. However, the budgetary actors have failed to adhere to this time period of budget implementation for clash of interest between political parties.
Among the many reasons for the situation, a centralized authorization process, cumbersome procurement procedures, flexible virement rules and absence of accountability are the glaring ones.
The fiscal budget is broadly segregated into recurrent and development expenses. Various analyses have shown that implementation of the recurrent expenditure is happens as allotted but the capital budget execution lags far behind.
The budget execution commences with the endorsement of Appropriation Bills in the Parliament. As an ideal budget spending time, the budget should have been approved and implemented from the start of the fiscal year. However, the budgetary actors have failed to adhere to this time period of budget implementation for clash of interest between political parties.
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