Spending on priority projects down

Kathmandu February 23-  The rate of spending on first priority projects is lower compared to second priority projects during the first half of the fiscal year. The government spent 22.37 percent of the allocated budget for first priority projects while spending on second priority projects reached 25.09 percent of the budget, the Mid-Term Review of the Budget for the current fiscal year said. Spending on third priority projects amounted to 2.07 percent of the allocated amount.

According to the report, 326 first priority (P1) projects, 120 second priority (P2) projects and 22 third priority (P3) projects are being implemented in the current fiscal year. The government has set aside Rs707.14 billion for P1 projects, Rs83.68 billion for while P2 projects and Rs28.63 billion for P3 projects.

Planning expert Pushpa Lal Shakya said that ministries were permitted to spend the budget for P2 projects directly while they are required to get the approval of the National Planning Commission (NPC) for P1 projects. “The longer time taken for P1 projects might have resulted in a higher rate of spending for P2 projects,” he said.