August 7: The government has adopted a new strategy to discourage eleventh-hour spending by development projects toward the end of the fiscal year.
Instead of freezing the budget at the end of the fiscal year for failing to spend the allocated amount, the government has decided to take such measure right after the second quarter of the fiscal year.
A meeting of the finance committee of parliament on Tuesday endorsed this provision in the related bill presented to the House of Representatives for approval.
According to the new provision, the finance ministry can transfer the allocated amount if the projects fail to spend the budget within the second quarter of the FY.
During the discussions at the finance committee, Minister for Finance Yuba Raj Khatiwada said that the concerned ministries used to inform the finance ministry about the spending only in mid-July (end of fiscal year). This has encouraged last-ditch spending by the projects, argued Minister Khatiwada.
Therefore, the government has decided to withdraw the budget by reviewing the progress at the end of second quarter to discourage the prevalent malpractice, said the minister.
According to Minister Khatiwada, the budget of the projects that do not spend the amount on time will be transferred elsewhere where there has been proper utilization of the budget.