Thursday, January 3, 2019

Local bodies should execute development projects: Dr. Khatiwada


Kathmandu, Jan. 1:
Minister for Finance Dr. Yuba Raj Khatiwada has said that implementing federalism and keeping the development projects with the federal government was against the spirit of the new political structure of the country.

"Some development partners and government agencies are asking the central government to keep many important projects with it. It's paradoxical. If we have to execute federalism in true spirit, projects should be implemented by the respected local bodies," he said while talking to The Rising Nepal on Tuesday.

According to him, the development partners are raising questions about the expenditure and monitoring capacity of local bodies, and their account system and asking the federal government to keep the projects with it.

At the same time, some of the projects are delayed because the required document, programme structure and other details couldn't be sent to the sub-national levels in time, he said.
There is another crucial concern about the capacity of the provincial and local governments.

The central government is for carrying the issues of capacity development of the provinces and devolution of rights but provinces are demanding that their right should be immediately practiced.
Dr. Khatiwada said that the confusion about the development projects would be addressed within the current fiscal year through the enactment of various laws and formulation of timely policies.

Recently concluded meetings of Inter-Provincial Council and Inter-Government Fiscal Council have prepared work procedures on the lists of rights, operating and executing development projects which will help in resolving the conflict and confusion among the various levels of governments.

"From the management aspects, federalism has been accomplished except a few legal provisions in terms of common areas of various governments and subjects that needed to be handed over to the provinces by the federal and to local bodies by the provincial governments," he said.

But, there are many things to do about financial management.

The Finance Minister has focused to creating and managing information technology based financial and account system.

"It is crucial to have capable local governments for the better functioning of federalism. The National Planning Commission, National Natural Resource and Fiscal Commission, Office of Auditor General and other stakeholders should put their joint efforts to enhance the capacity of the local bodies," he said.

"They have to develop the Mid-Term Expenditure Framework (MTEF) which is not the cup of tea of most of the local governments. They have to be trained on prioritizing development expenditure and utilising it in a productive way. There should be an effective coordination among the three level of the government," he added.

Likewise, he said that the capital expenditure was satisfactory but it was not exhibited in the reports due to delay in the payment.

"I have seen that there is a culture to wait till the end of the fiscal year to make the payment," he said.

He also said that in terms of the new projects delay was natural since the government had to formulate new working procedure, bylaws and make other necessary preparations while some of the programmes were lagging behind because their Detailed Project Report (DPR) couldn't be concluded in time.

Dr. Khatiwada said that development projects had witnessed glitches time and again due to the poor understanding of development and insufficient discussion about the programmes at the political level, and lack of capacity in the private sector.

He is hopeful about attaining high economic growth.

"We are amongst a few countries in the world that witnessed higher than 6 per cent growth for three consecutive years. But there is a need of a heavy invest on capital formation in order to sustain the current growth.  Large infrastructure should be the development priority and those projects should be completed on time," he said.


Published in The Rising Nepal daily on 2 January 2019. 

No comments:

Post a Comment

Featured Story

Govt prepares primary draft of DRR Policy

Kathmandu, Apr. 29: The government has prepared the preliminary report of the National Disaster Risk Reduction (DRR) Policy and Strategic ...