Govt okays five-year action plan to enhance effectiveness of public spending

KATHMANDU: A five-year plan to enhance the effectiveness of public spending has been approved.

A meeting of the National Planning Commission (NPC) held on April 23 approved the Public Investment Management Action Plan, 2024/25-2029/30. The action plan aims to ensure the effectiveness of public spending in projects implemented by the government, public corporations, and public-private partnership ventures.

According to the NPC, the action plan has been brought realizing the need for a long-term strategy to increase the effectiveness of public spending, increase capital spending, and expedite development infrastructure works.

All three tiers of government have continuously been unable to spend a significant portion of the budget allocated for public infrastructure and development projects. Due to the inability to spend the allocated funds within the set timeframe, the cost and time for projects have increased, while the public has been deprived of availing services and facilities on time.

The action plan has set seven specific goals to address this issue. The first goal set by the action plan is to gradually reform the National Project Bank. Similarly, other goals include streamlining the capital project portfolio through regular and transparent central monitoring, enhancing transparency in investment projects included in the budget, and preparing and implementing guidelines for regular maintenance of public infrastructure and facilities.

Other goals outlined in the action plan include ensuring effective and transparent monitoring of public procurement by improving the electronic public procurement system, improving central monitoring and inspection of investment projects undertaken through public enterprises and public-private partnerships, and making necessary arrangements to strengthen project management.

For each of these goals, the action plan has specified the key tasks to be accomplished, along with the responsible agencies and authorities.

The action plan will come into implementation from the next fiscal year which begins in mid-July.