Donor Agencies to Contribute 75 percent in reconstruction Budget

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May 28: Donor agencies are to contribute 75.33 per cent of the total budget ceiling to be allocated on various activities related to reconstruction in the upcoming fiscal year 2074-75 BS.

Out of Rs 1.46 billion, which the National Reconstruction Authority (NRA) has received as budget ceiling for the coming fiscal year, only 24.67 per cent amount or Rs 36 billion comes from the internal sources. 

In the current fiscal year 2073/74 BS, out of the total reconstruction budget of Rs 109 billion, 74.32 per cent is the grant and subsidized loans from donor agencies and 25.68 per cent is the internal budget.

Though the government has given much priority to the reconstruction work, it is seen that the grants and loans seems higher in the budget due to not being able to manage internal budget, which is creating problems in budget mobilization. The capital expenditure is higher lately, whereas the current expenditure used to be higher in the reconstruction sector in the past.

According to an official of the Authority, the donor agencies don’t provide the budget on time and there are many contradictory policies of each agency. 

According to Spokesperson of NRA, Yamlal Bhusal, the World Bank, Asian Development Bank (ADB), JICA and India are the major contributors to the Authority, among 23 donor agencies that have been supporting development initiatives in Nepal.

He said that the Authority has been granted a less ceiling for the next fiscal year though it had asked for a budget of Rs 200 billion.

"Keeping this in mind, we have been prioritizing programmes such as integrated settlement development and relocation of settlements," Bhusal said.

According to the Authority, private residences, governmental buildings, security bodies' buildings, local infrastructures like small roads, drinking water and irrigation, archaeological heritages, strategic roads, livelihood related activities will also be continued in the upcoming fiscal year.

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