Budget focuses on effective utilisation of resources: Finance Minister Paudel

PATAN, LALITPUR: Deputy Prime Minister and Minister for Finance Bishnu Prasad Paudel said the newly introduced budget for the fiscal year 2025/26 will ensure proper utilisation of available resources and foster infrastructure development.

In a discussion organised by the Society of infrastructure Journalists- Nepal (SIJ-Nepal) on the "Infrastructure sector in budget and its implementation," Finance Minister Paudel reiterated that the budget had been devised to prevent the misuse of resources in the construction of infrastructure. He added that the budget had been allocated in a realistic manner, taking account of the needs of the nation and the available resources.

According to him, several reform measures have been introduced and implemented to address longstanding problems and challenges in the infrastructure sector, and he expressed his belief that these measures would yield results.

"Budget is only a single digit document. The budget is prepared in a realistic manner so that the credibility of the budget is not questioned," Minister Paudel asserted, claiming that there has been no criticism of the government's newly introduced annual estimates of income and expenditure.

It is to be noted that the incumbent government on May 29 introduced an annual budget of Rs 1,964.11 billion for the upcoming fiscal year 2025/26.

For fiscal discipline, he said the budget includes a dedicated focus on capital expenditure to ensure proper management of resources and timely spending of the allocated funds.

In departure from the trend of increasing general expenditure, the Minister highlighted that stringent measures have been put in place to cap general expenditure, thus preventing excessive recurrent spending.

Regarding the Public Procurement Act, Minister Paudel stated that the 14th amendment to the Act has already addressed some existing issues. He expressed his readiness to consider further amendments to the Act if necessary to promote the country's construction sector.

Addressing concerns over the shortage of construction materials affecting the timeliness of construction works, Deputy Prime Minister Paudel explained that the excavation of mining and aggregate materials would only be permitted from appropriate sites and following a thorough environmental impact assessment.

Citing the provision of alternative development financing for mega projects introduced by the government, he expressed confidence that the parliament would endorse the necessary laws to facilitate such provisions.

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