Finance Minister Paudel: Newly introduced budget focuses on effective utilization of resources

Kathmandu: Deputy Prime Minister and Minister for Finance Bishnu Prasad Paudel has assured that the newly introduced budget for the fiscal year 2025/26 would ensure proper utilization of the available resources and foster infrastructure development.

In a discussion organized by the Society of Infrastructure Journalists (SIJ-Nepal) on the ‘Infrastructure sector in budget and its implementation’, Minister Paudel reiterated that the budget has been devised to prevent the misuse of resources in the construction of infrastructure.

Minister Paudel said the budget was allocated in a realistic approach, taking into consideration the needs of the nation and available resources. According to him, several reform measures have been introduced and implemented to address the longstanding problems and challenges in the infrastructure sector. He believed that these measures would yield result-oriented outcomes.

‘Budget is only a single digit document. The budget is prepared in a realistic so that the credibility of the budget is not questioned,’ said Minister Paudel.

He said there has been no any criticism on the newly introduced annual estimates of income and expenditure. It may be noted that the incumbent government on May 29 had introduced an annual budget of Rs 1.964 trillion the fiscal year 2025/26.

Furthermore, for fiscal discipline, he informed that budget includes a dedicated focus on capital expenditure to ensure proper management of the resources and timely spending of the allocated budget. In a departure from the trend of increasing general expenditure, Minister Paudel highlighted that stringent measures have been put in place to cap the general expenditure to prevent excessive recurrent spending. As for the Public Procurement Act, he informed that the 14th amendment to the Act has already addressed some existing issues.

He expressed his readiness to consider further amendments in the Act if need be, so as to promote country’s construction sector. Addressing concerns over shortage of construction materials affecting construction works’ timeliness.

Minister Poudel said that the excavation of mining and aggregate materials will be allowed from only appropriate places and after conducting environment impact assessment. Citing the provision of alternative development financing for mega projects introduced by the government, he was confident that the parliament would endorse necessary laws to facilitate such provisions.

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