In the Public Policy Committee, Minister Ghising informed that the progress of the Ministry of Urban Development, Transport and Irrigation has been affected due to the withholding of a large amount of funds.
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Minister for Energy, Water Resources and Irrigation, Physical Infrastructure, Transport and Urban Development Kulman Ghising has said that the main reason for the low development expenditure in the first quarter of the current fiscal year is the government budget freeze.
In a meeting of the Public Policy and Delegated Legislation Committee of the National Assembly, Minister Ghising said that there has been no progress due to the withholding of a budget of Rs 195 billion under three ministries alone.
Stating that about Rs 61 billion of the budget of the Ministry of Urban Development alone has been withheld, he said that the physical progress has been low. He said that the progress seen in the first quarter should be taken positively in the situation of budget withholding.
‘If we look at it minus the withheld budget, the progress percentage reaches above 20 percent. The low expenditure seen now is not a real weakness, but the effect of the withheld budget,’ Minister Ghising said, ‘Progress is always low in the first quarter. On top of that, this time, many projects have had problems moving forward due to the Gen-G movement.’
Minister Ghising said that the second biggest obstacle after the withholding of the budget is the Gen-G movement and the closure of work at various project sites. He said that strict action has been taken against construction entrepreneurs who do not work.
He informed the committee that 49 contracts have been officially terminated so far in the process of terminating 269 project contracts. Admitting that some projects have been kept haphazardly, Minister Ghising said that he agreed to cut such budgets. ‘There are continuous discussions with the Ministry of Finance and the Prime Minister on this issue,’ Minister Ghising said. He informed that the design and construction process of the reconstruction structures is progressing rapidly.
In the committee meeting, Secretary of the Ministry of Urban Development Gopal Sigdel said that 2,140 programs worth Rs 6,176 crore have been put on hold. He said that the sequential projects have also been put on hold. ‘It was said that no budget of less than Rs 30 million should be kept, it seems that it has been stopped just by looking at the budget figures,’ he said, ‘Two-thirds of the ministry’s budget is on hold. We have not been able to start the procurement process. If it cannot be released immediately, it will be difficult to resume it in the current fiscal year.’ He also informed that 87 percent of the physical progress of the Federal Parliament Building has been made.
Secretary of the Ministry of Physical Infrastructure and Transport, Keshav Kumar Sharma, said that there is no principled disagreement on the withholding of budgets of less than Rs 30 million. ‘There is no principled disagreement. But there are such plans of the national highway itself, which require a budget of less than Rs 30 million for many works including maintenance,’ he said, ‘It is not a matter of adding money to a plan that does not require Rs 30 million.’
Sharma also said that the Ministry of Finance has been requested to release the withheld budget of many such projects. Irrigation Secretary Sarita Dawadi said that a budget of Rs 8.72 billion has been withheld. She complained that the budget for river and disaster management has been withheld mainly.
