Development Projects Hampered by Delayed Budget Release, Says Ministry Secretary
Secretary of the Ministry of Water Supply, Bishwababu Poudasaini, announced that the ministry has initiated policy and structural reforms aimed at improving the water supply sector. Speaking at a meeting of the Infrastructure Development Committee under the House of Representatives on Wednesday, June 24, Secretary Poudasaini provided an update on the ministry's plans. He discussed the traditional budget allocation system, the current status of the Melamchi Project, and institutional restructuring initiatives. According to Poudasaini, the Ministry of Finance allocates the budget, but delays in its release have significantly impacted the progress of development projects. This delay has consequently affected the timely implementation of various development schemes within the water supply sector.
The reported delays in budget release by the Ministry of Finance, impacting development projects in the water supply sector, highlight potential inefficiencies in inter-ministerial fiscal coordination. This situation raises questions about the robustness of Nepal's public financial management systems, particularly in ensuring that allocated funds are disbursed promptly to facilitate project execution. Such bottlenecks can lead to increased project costs, reduced effectiveness of public spending, and a slower pace of national development. Looking ahead, a review of budget release protocols and inter-agency communication mechanisms could be beneficial to mitigate future recurrences and enhance the government's capacity to deliver on its development agenda.
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