Sunday, May 7, 2017

Reconstruction Fund in operation next year

Kathmandu, May 5: The much-awaited Reconstruction Fund, a separate fund for mobilizing money for the post-quake reconstruction works, will not be activated in the current fiscal year, according to the Ministry of Finance (MoF).
Although the Reconstruction Act, 2015, has made provisions for a separate fund of the post-quake reconstruction, there has been no progress towards implementing the legal condition even after more than 15 months of the Act’s promulgation.
The Fund was never a priority for the government.
As the government couldn’t activate the fund 14 months after the devastating Gorkha Earthquake hit the country on April 25, 2015, the Development Committee under the Legislature-Parliament had directed it on March 22, to utilize the fund within a month.
One-and-a-half months after the House panel directed the government regarding the implementation of the fund, there has been no progress so far.
Chief executive officer of the National Reconstruction Authority (NRA) Dr. Govinda Raj Pokharel has been urging the government to activate the fund at the earliest.
The MoF said that the fund would be materialised in the next fiscal year which will begin on July 16.
Talking to The Rising Nepal, joint-secretary at the MoF said that as many policy provisions, needed to be made in order to activate the fund, would be created in the budget of the coming fiscal, it would be easy to activate the fund then after.   
According to the Act, a separate fund for reconstruction will be established, where money received from the government, the Prime Minister Disaster Relief Fund, organizations, associations or individuals and other sources would be deposited.
After the establishment of such fund, the NRA can mobilise fund in a hassle-free way as the money in the Fund will not freeze. However, the Financial Comptroller General Office (FCGO) will monitor the income and expenditure of the fund.
The NRA had already prepared the Reconstruction Fund Management and Operation Procedure in 2016.
According to the procedure, the income and expenditure of foreign cash or logistics support from the donors should also be included in the annual financial report which the reconstruction body submits to the government.



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