Poor capital expenditure of metros

फाल्गुन २७, २०८१

सम्पादकीय

Poor capital expenditure of metros

We lack the budget for development. But from the union to the local government, they are not able to mobilize even the small budget allocated for development. The federal government was weak in its ability to spend capital which is considered as development expenditure, the performance of state and local governments was also disappointing.

In the 7 months of the current financial year, the average capital expenditure of 6 metropolises is only 17.90 percent, which expresses our common weakness. The geography of the metropolis is relatively easy for development. The heads of the metropolis should review the weaknesses in themselves and their subordinate bodies. 

For the financial year 2080/81, the federal government allocated 3 trillion 2 billion rupees in capital budget, but only 1 trillion 91 billion 73 billion rupees could be spent. 3 trillion 52 billion rupees have been allocated for capital expenditure in the current financial year. The expenditure till the middle of January is only 68 billion 41 crore 59 lakh rupees. This trend has extended to state and local governments. Birganj Metropolitan Corporation has spent 244.1 million from last July to January out of 748.3 million allocated. Despite being able to spend only 32.62 percent of capital expenditure in 7 months, Birgunj metropolis has become the leader because the performance of other metropolises is even weaker than that. Pokhara has spent 81.71 million or 19.04 percent of the 4.29 billion allocated. Lalitpur has spent 88.36 million i.e. 18.88 percent out of 4 billion 67 million allocated. 

Kathmandu metropolis, which has the largest budget, has spent a total of 13.4 percent of capital expenditure in 7 months. Kathmandu, which has allocated 15.5 billion, has spent 2.1 billion till January. Similarly, Biratnagar has spent 21.55 million i.e. 12.92 percent out of 1 billion 66 million allocated. Bharatpur, which is at the bottom, has been able to spend only 10.56 percent. Bharatpur, which has allocated 3.82 billion crores, has mobilized 40.39 million crores in 7 months. The representatives of the metropolis claim that due to the delay in the payment of completed works, the capital expenditure is low but will increase as the payment is made. Even though the percentage of expenditure may increase somewhat, there is no basis for encouraging the expenditure system, because the overall data of the previous years also says the same.

Among the three tiers of government, local government is interpreted as the initiator of development. The local government is the most knowledgeable about the aspirations of the people. Local government leadership is directly elected by voters, so it is easier to exercise authority. As the amount, geography and the scope of capital expenditure are limited, spending the allocated amount will not be a hindrance. But it is a matter of concern that the self-allocated budget cannot be spent in spite of many favors. On the one hand, the size of the amount allocated for capital expenditure is weak and the same amount is not spent, so our development aspirations seem to be fading. Lack of capital expenditure naturally not only delays the development works, but the demolition of old structures for new constructions creates obstacles and harassment. From job creation to capital formation, there is a negative impact. Imports affect the export cycle. At the end of the financial year, the tendency to rush to show increased capital expenditure compromises both the quality of work and the utilization of the budget. 

There are structural and trending reasons for the reduction in capital expenditure of the union and state governments. In order to improve this, the government should be able to improve its working skills in aspects such as plan selection and budget allocation. At the same time, it should be possible to make the rewards and punishments effective from step-by-step monitoring in the implementation of the project. On the other hand, in the local government, the representatives such as the mayor and the chairmen of various wards are elected from different political beliefs. If trust and mutual coordination can be established between the people's representatives, development work can proceed smoothly with the participation of all parties. Likewise, coordination between public representatives and employees should also be increased. From contract awarding to site clearance, there is a hassle. If all these can be made development friendly, the rate of capital expenditure can be increased.

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