The Ministry of Finance’s monitoring and evaluation unit is meticulously examining how budget allocations are being utilized by all government ministries.
During an appearance on The Lens@177 this week, Finance Minister Professor Biman Prasad did not specify which ministries had failed to utilize their allocated funds. However, he emphasized that the entire Cabinet is vigilant about the proper and timely use of funds.
“We are aware that when you allocate a budget, such as for the Ministry of Health, it is essential to ensure that all health centers and hospitals have the necessary consumables and equipment,” said Prof Prasad. “It is the responsibility of the permanent secretary, the ministry, and the staff to ensure this is delivered.”
He noted that if there is a water project with a budget allocation, it must be completed within the year. As a new Government, they have observed that some ministries are more efficient than others in utilizing their budgets, with some facing challenges beyond their control, such as hiring contractors or navigating tender processes, which can be time-consuming.
“We have seen that in some ministries, the budget utilization was not as effective as expected, which impacts services and the timely completion of essential tasks,” Prof Prasad added. “This year, we have established a monitoring and evaluation unit within the Ministry of Finance to closely monitor and ensure proper utilization of funds by ministries.”
When asked if he needed to adopt a softer approach to communicate his message, Prof Prasad said it was unnecessary. He mentioned that during discussions with permanent secretaries and ministers, some ministries requested increased allocations but were reminded to first utilize existing budget allocations before asking for more.
“In some cases, we have reduced the budget of certain ministries and reallocated that money to others where it can be more effectively used,” Prof Prasad explained. “In the last budget, we undertook a very careful reallocation of expenditures.”
Prof Prasad concluded by stating that all ministries have received a clear message from the Ministry of Finance, the Government, and the Prime Minister regarding the importance of proper fund utilization.