MoF asks govt agencies to make necessary preparation to utilize the allocated funds by mid-August

Published On: July 23, 2023 07:40 AM NPT By: RAJESH KHANAL

Lesson learned from low revenue collection with poor capital expenditure in FY 2022/23, govt targets to expedite development projects

KATHMANDU, July 23: In a bid to ensure effective implementation of the budget, the Ministry of Finance (MoF) has issued 81-point guidelines to all the ministries, departments and agencies of the government.

The MoF has given a deadline of mid-August to make necessary preparations by following the procedures recommended by the ministry. The guideline has been issued calling the government bodies for maximum utilization of resources, frugality in expenditure, effectiveness and efficiency.

According to the ministry, it has directed to complete the preparations of the annual plans and programs in the budget of the current fiscal year as soon as possible. In order to implement the program, if procedures, guidelines, standards need to be revised or a new design is required, the offices concerned can do so by taking consent of the MoF. However, they have to publish the revised rules on their website within seven days of receiving the approval.

Similarly, after completing the preparatory stage of the project, the annual procurement plan with quarterly division of the project, detailed design and cost estimation should be prepared and approved by mid-October, while they should call for bids accordingly.

According to the given timeline, the evaluation of the bids and contract award should be fixed by mid-November. The project should be started within 15 days of the contract agreement.

The MoF has warned to suspend the budget that will not progress to the contract process by mid-October. The ministry has instructed to cancel the contract and take action against the builders who do not maintain the specified quality, do not start the work within time and leave the work unfinished.

Programs and projects under multi-year contracts will have to manage necessary funds from the allocated budget. In case of the new long-term infrastructure projects such as roads, bridges, dams, irrigation, canals and those with the cost of over Rs 50 million, the offices concerned should make the contractors manage the projects even up to five years from the date of completion of the construction.

The MoF has also cautioned the government agencies not to go into more than one subleasing of the contracts. The National Vigilance Center will be conducting a technical audit regarding the quality of the built projects that are worth over Rs 100 million.

Likewise, arrangements will be made to implement the Constituent Infrastructure Development Program through the line ministries. The MoF has also asked not to purchase new vehicles, furniture and furnishing materials, while to expedite auctioning the vehicles, furniture, computers and laptops that cannot be repaired, within the next six months.