"Newly introduced budget focuses on effective utilization of resources"

File photo of FinMin Paudel

KATHMANDU, JUNE 4: Deputy Prime Minister and Minister for Finance Bishnu Prasad Paudel has assured that the newly introduced budget for the upcoming fiscal year 2025/26 will ensure proper utilization of available resources and promote infrastructure development.

Speaking at a discussion organized by the Society of Infrastructure Journalists (SIJ-Nepal) on the “Infrastructure Sector in the Budget and Its Implementation,” DPM Paudel emphasized that the budget has been carefully designed to prevent misuse of funds in infrastructure projects.

He added that the budget was prepared realistically, taking into account the nation’s needs and available resources. According to him, several reform measures have been introduced and implemented to tackle longstanding challenges in the infrastructure sector, and he expressed confidence that these measures will deliver result-oriented outcomes.

“Budget is only a single-digit document. It has been prepared realistically to maintain its credibility,” the DPM asserted, noting that the newly introduced annual estimates of income and expenditure have not faced any criticism.

It may be noted that the government presented an annual budget of NPR 1.964 trillion for the fiscal year 2025/26 on May 29.

Further highlighting fiscal discipline, he stated that the budget prioritizes capital expenditure to ensure efficient resource management and timely utilization of the allocated funds.

Breaking away from the trend of rising general expenditures, DPM Paudel pointed out that stringent measures have been introduced to cap general expenses and prevent excessive recurrent spending.

Regarding the Public Procurement Act, he mentioned that the 14th amendment has already resolved some existing issues, and expressed readiness to consider further amendments to support the country’s construction sector.

Addressing concerns about shortages of construction materials causing delays, he said excavation of mining and aggregate materials will be permitted only from designated sites following environmental impact assessments.

Citing the government’s introduction of alternative development financing for mega projects, he expressed confidence that Parliament would pass the necessary laws to facilitate these provisions.