KATHMANDU: Minister for Energy, Water Resources and Irrigation, Kulman Ghising, has said the delayed budget release is one of the primary reasons for the low development spending in the first quarter of the current fiscal year.

Minister Ghising, who also heads the Ministry of Physical Infrastructure and Transport, and the Ministry of Urban Development, said it while speaking at today’s meeting of the Public Policy and Delegated Legislation Committee under the National Assembly.

He argued development endeavours have hit snags repeatedly due to budget pause amounting to Rs 195 billion across three ministries. Of this, around Rs 61 billion has been paused under the Ministry of Urban Development alone. He noted that the first-quarter progress should still be viewed positively despite the budget abeyance.

“If we deduct the paused budget, the progress stands above 20 percent. The current expenditure data does not reflect the actual situation; it is the result of the suspension of budget allocation. Similarly, the recent Gen Z protest also hindered the progress of various projects,” he shared.

The Minister stated that contractors who repeatedly missed deadlines have been penalised. Of the 269 projects in the process of contract termination, 49 have already been officially terminated.

Acknowledging that some projects were proposed and approved in a haphazard manner, the Minister said that the government is ready to cut the budget for such boondoggles. According to him, these funds should instead be utilised to build essential infrastructures such as much-needed bridges in districts like Jumla and Humla and other facilities vital for daily life.

The Minister added that ongoing discussions are being held with the Ministry of Finance and the Prime Minister regarding this issue. He said that the design and construction of reconstruction structures are progressing rapidly, and that long-term as well as short-term projects in energy, irrigation, roads, and urban development will now advance at a faster pace.