NPC Vice Chair urges budget priority for ready-to-implement projects

KATHMANDU, MAY 8 : Vice Chairman of the National Planning Commission (NPC), Prof. Dr. Shivraj Adhikari, has called on the government to prioritize budget allocations for projects that are ready for immediate implementation, cautioning against spreading limited resources too thin.

Speaking at an interaction program on the formulation of the Annual Development Programme, the Mid-Term Expenditure Framework (MTEF), and the status of the NPC’s national project bank yesterday, Dr. Adhikari said projects will now be categorized based on their level of study and readiness for execution.

“Only enforceable projects with a minimum budget threshold of Rs 30 million should be considered,” he said. “Projects that do not meet basic enforceability criteria should not be listed as national pride projects.”

He also emphasized that budget allocations must be strictly aligned with government policies and programs. Projects that are not included in the national project bank or that lack a detailed project report (DPR) will be sent back for further study, he added.

Dr. Adhikari’s remarks come amid growing concern over low capital spending and ineffective project prioritization in past years. He urged planners to focus on quality over quantity, stating that financially and technically viable projects must be emphasized in the upcoming budget cycle.

During the same event, Joint Secretary Khomraj Koirala shared updates on the Mid-Term Expenditure Framework. He reported that only 40 out of 44 government agencies had submitted the required data. More worryingly, capital expenditure had reached just 32 percent—indicating severe underutilization of allocated funds.

Another Joint Secretary briefed participants on the national project bank, revealing that a total of 7,337 projects have been entered into the system so far. However, many of them remain in the drafting or preliminary study phase, raising concerns about their actual implementability.

The NPC is pushing for stronger coordination among line ministries to ensure that only feasible and priority projects receive funding. With limited fiscal space and growing public debt, planning authorities are under pressure to deliver development outcomes more efficiently.

The emphasis on readiness, enforceability, and strategic alignment marks a shift toward performance-based budgeting in Nepal, aiming to improve fiscal discipline and development effectiveness.