Low capital spending in Q1 due to budget cuts: Ghising

KATHMANDU: Ministry for Physical Infrastructure and Transport Kulman Ghising has attributed the low capital spending in the first quarter of the current fiscal year to budget cuts under different headings.

Speaking at the meeting of the Public Policy and Delegated Legislation Committee of the National Assembly on Monday, Ghising said the decision to suspend spending of Rs 195 billion of three ministries under him affected development works in the review period.

Ghising also looks after Energy, Water Resources and Irrigation; and Urban Development portfolios.

Ghising added that nearly Rs 61 billion allocated to the Ministry of Urban Development alone had been frozen. The progress seen in the first quarter, despite this, should be viewed positively.

The finance ministry has cut several projects included in the budget speech for the current fiscal year to arrange resources for the House of Representatives elections.

“If we look at the progress after adjusting for the suspended budget, the progress rate exceeds 20%. The low expenditure currently seen is not a real weakness; it is the impact of the budget cut,” Minister Ghising said. “The first quarter always shows low progress. On top of that, this time the Gen Z protests created difficulties in moving many projects forward.”