The Ministry of Finance’s monitoring and evaluation unit is closely examining how government ministries are using their budget allocations.
During an appearance on The Lens@177 this week, Finance Minister Professor Biman Prasad did not specify which ministries had underutilized funds. However, he emphasized that the entire Cabinet is focused on ensuring the proper and timely use of allocated funds.
“We are aware that when a budget is allocated, for instance to the Ministry of Health, it is essential to ensure that all health centers and hospitals have the necessary consumables and machines,” Prof. Prasad stated. “It is the responsibility of the permanent secretary, the ministry, and the staff to ensure this delivery.”
He highlighted that for projects like those related to water, the allocated budget must be used within the given year effectively. As a new Government, Prof. Prasad noted that some ministries are more efficient than others.
Some ministries are adept at fully utilizing their budgets, while others face challenges, such as delays in hiring contractors or navigating tender processes. “We have observed that in some ministries, the utilization was not as good as expected, impacting services that need quick action,” he said.
To address this, the Ministry of Finance has established a monitoring and evaluation unit to closely monitor budget utilization across all ministries.
When questioned if he needed to be diplomatic to convey his message, Prof. Prasad responded that he did not. He mentioned that during discussions with permanent secretaries and ministers, some ministries requested increased allocations, to which he had to respond critically if they had not utilized their previous budgets.
“If a ministry requests an additional $10 million, my response would be, ‘Hang on. You haven’t used $5 million from the previous budget. Why ask for more?’” he explained. “For some ministries, we have indeed reduced their budgets, reallocating the funds to where they can be effectively used.”
In the last budget, a careful reassessment of expenditures was conducted. Prof. Prasad reiterated that all ministries have received a clear directive from the Ministry of Finance, the Government, and the Prime Minister regarding the proper use of funds.