KATHMANDU, APRIL 8: A five-year action plan has been unveiled to enhance government spending effectiveness. The National Planning Commission (NPC) introduced the Public Investment Management Action Plan (2081/82-2085/86) in a bid to ensure effectiveness in project spending according to the concepts of government, public corporations, and public-private investments. The action plan was endorsed during the NPC’s meeting on April 23. Dr. Divakar Luintel, the information officer at NPC, stated that it was implemented after realizing the need for a long-term strategy to accelerate development projects, boost capital spending, and ensure the effectiveness of public investment.
At a time when a significant portion of the budget allocated for infrastructure construction remains unutilized by all three tiers of government, the action plan is expected to address persistent issues in this sector. Delays in completing development projects lead to increased time and costs, ultimately impacting the state’s finances and reputation, thus affecting citizens negatively. To address these issues, the action plan has established seven goals
According to the plan, a regular and transparent central monitoring system will be implemented to effectively manage the capital project portfolio, and the national project bank will be reformed in phases. The electronic public procurement system will be enhanced to increase transparency and effectiveness in public procurement. Public structures and infrastructures will be regularly renovated, with appropriate directives put in place. Project chiefs will be assigned responsibilities. Eliminating duplication in development projects is another goal of the action plan.
Currently, there is no integrated data or details on projects and their associated spending by the three-tier government. In response to criticisms regarding the government’s inefficiency in selecting projects and programs in the annual budget, the action plan emphasizes adequate project preparation to secure budget allocations, while unviable projects will be discontinued.”
