Finance minister defends constituency development fund

KATHMANDU: Minister for Finance Dr Prakash Sharan Mahat has defended the Local Infrastructure Development Partnership Program which has been reintroduced in the budget after a gap of two years.

Also known as the Constituency Development Fund, the program was discontinued in 2021/22 following widespread criticism from different sections of society. However, Dr Mahat has allocated Rs 50 million for each electoral constituency in the budget for 2023/24 unveiled on Monday.

Speaking at a press meet organized by the Ministry of Finance on Tuesday, Dr Mahat claimed that lawmakers won’t have any say in project selection. “The concerned ministry will take care of the tendering process,” he added.

The budget clearly states that the fund cannot be spent on projects costing less than Rs 10 million. Likewise, the project has to be selected in the participation of both directly elected and proportionate lawmakers, as well as people’s representatives of the concerned local unit.

The government has allocated Rs 8.25 billion for the program.

Mahat also said that the suggestions that the government is not even in a position to pay its employees were baseless. “We will mobilize resources for the salary and allowances of employees,” he added.