There is also a perception that after federalism, there has been an unnecessary increase in state expenditure. Therefore, self-control and transparency of administrative expenditure should be the main mantra of every government. Only then will the trust of the citizens in the state and the system become stronger.
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The country is awaiting political reconstruction after the Gen-G protests of 23 and 24 Bhadra. In the backdrop of the resignation of the then Prime Minister KP Sharma Oli, the formation of a government under the leadership of Sushila Karki, contrary to the prevailing norms of the constitution, and the dissolution of the House of Representatives and the scheduled new elections on 21 Falgun, there is interest among the public about the political momentum and destination of the country.
The election is expected to lead the country towards political reconstruction. However, the country is also tasked with rebuilding the arson and vandalism that took place across the country on Bhadra 24.
Detailed data on the damage to physical property of all three levels of government and the private sector has not been made public, although experts have estimated the damage to be in the trillions of rupees. The challenge is how to raise such a large amount for reconstruction. However, the government, from the union to the provinces, is preparing to cut spending and spend it on reconstruction. This is positive.
Due to the huge losses suffered by the country, there is pressure on all levels of government to be frugal in spending. The federal government has also tried to address it. The federal government has cut about 1.25 trillion rupees from the total budget allocated for the current fiscal year. The government has cut the budget of about 14.1 billion rupees from about a dozen development ministries. The budget cuts (postponements) have been made for projects that lack preparation and resource assurance, are relatively less necessary, are included in the budget based on access and pressure, and are outside the project bank.
Accordingly, the budget of the Ministry of Urban Development has been frozen at Rs 63.96 billion. 25 million. Similarly, the budget of Physical Infrastructure at Rs 19.12 billion, Drinking Water at Rs 13.95 billion. 53 million, Energy, Water Resources and Irrigation at Rs 7.13 billion. 73 billion. 36 billion has been suspended. The budget of Youth and Sports at Rs 2.77 billion. 60 million, Industry, Commerce and Supplies at Rs 1.45 billion. 66 million, Forest and Environment at Rs 642 million. 286 million has been suspended.
The Gandaki Provincial Government, which suffered losses of around Rs 2 billion during the Gen-G movement, has also decided to cut spending. The Gandaki government is preparing to cut the budget of around Rs 2.5 billion allocated for the current fiscal year to reconstruct the physical infrastructure damaged during the movement.
The Gandaki cabinet meeting held on Kartik 11 had decided to partially and completely cut the budget allocated for current headings including tourism leave, vehicle purchase, and visits. Accordingly, software purchase expenses will be cut by 80 percent, monitoring-evaluation, travel and newspaper expenses by 50-50 percent, food and miscellaneous expenses by 25-25 percent, and fuel and vehicle maintenance expenses by 20-20 percent. The government plans to cut the budget for public property maintenance in ministries that have not been damaged by 50-50 percent.
It is natural to cut the budget allocated for non-essential projects when there has been major damage and when there is a crisis. This sends a message that the government has not lost its way and is taking the crisis seriously. It also increases the loyalty of the people to the state. We also have projects in the budget that lack preparation and resource assurance, are comparatively less necessary, are placed on the basis of access and pressure, and are outside the project bank.
There were also questions about the appropriateness of such projects. At this time, their budgets have been postponed. The trend of including such projects in the budget should be postponed in the coming days. Instead, the budget allocated for such projects should be spent on projects that can lead to capital development and job creation.
During the Gen-G movement, physical assets of the three levels of government have been damaged. Relying on external sources for reconstruction may be an option. For that, the federal government has also established a ‘Physical Infrastructure Reconstruction Fund’. Such efforts may be helpful in raising the necessary funds for reconstruction, but they may not be sufficient. Therefore, the government itself should also decide to cut the budget of low-priority projects. It can be understood that the decision of the Gandaki Provincial Government at this time is focused on this objective. Other provinces and local levels can also learn from Gandaki Province.
Cutting administrative expenditure of all levels of government is also linked to the credibility of our system. There are allegations that the political and administrative leadership of the government has benefited from the benefits. There are also allegations of arbitrarily misusing the budget in project selection. There is also a perception that there has been an unnecessary increase in state expenditure after federalism. Therefore, self-control and transparency of administrative expenditure should be the main mantra of every government. Only then will citizens' trust in the state and the system become stronger.
