Kathmandu, February 24
The government is working on a bill that would restrict funding for projects which have not carried out feasibility studies. If the bill becomes law, the ministries concerned will have to submit a feasibility study report to the Ministry of Finance before it can seek any development expenditure from the government.
The Fiscal Responsibility and Economic Guidelines Bill aims to stop ministries from declaring various project without conducting a proper feasibility study. According to officials, such declarations not only cause delays in the implementation of projects, but also puts others at risk.
The government, which has been handing out funds for projects which haven’t undergone a feasibility study, has concluded that such projects are a waste of tax payer’s money. According to the bill, the Finance Ministry shall also demand technical proof that the project is viable.
The bill, when it becomes law, shall give priority to projects which generate more return. The ministries and projects will also have to give the finance ministry a detailed report on how they plan to spend the money. The bill also states that long term projects which create economic liability for the country will not be given money without the approval of the Finance Ministry.
Various figures such as revenue, cost, three-year expenditure plan, income expenses of the next three years, and the project’s impact on GDP and inflation will also all be looked at before the budget is passed by the Finance Ministry.
The bill also proposes that a project bank be set up to handle all national projects. The ministries handling the projects will have to review their projects on a monthly basis. The bill proposes to give the Finance Ministry the right to set public expenditure guidelines.
