May 9: The National Planning Commission (NPC) has unveiled a comprehensive action plan aimed at enhancing the effectiveness of government spending over the next five years, the state-owned RSS reported.

Entitled the Public Investment Management Action Plan (2081/82-2085/86), the initiative is aimed at optimizing project expenditure across government, public corporations, and public-private partnerships.

The action plan was endorsed by the NPC's meeting on April 23.    
Information officer at NPC, Dr Divakar Luintel, informed RSS that the action plan was brought after realizing the need of a long-term strategy to invigorate development projects, stimulate capital investment, and ensure the efficiency of public funds.

Amidst the backdrop of significant underutilization of budget allocations for infrastructure development across all tiers of government, the action plan is poised to address persistent challenges within the sector.

Prolonged project delays contribute to escalating costs and strain state finances, adversely impacting both the fiscal outlook and public perception.

To address these issues, the action plan delineates seven key objectives. These include the establishment of a centralized, transparent monitoring system to oversee capital project portfolios, alongside phased reforms to the national project bank.

Furthermore, enhancements to the electronic public procurement system are slated to enhance transparency and efficiency in procurement processes. A directive for regular maintenance of public structures and infrastructure is also on the agenda.

Crucially, the plan aims to eliminate duplication in development projects, underscoring the absence of integrated data and expenditure details across all tiers of government.

In response to criticism surrounding the government's project selection and budget allocation processes, the action plan emphasizes rigorous project preparation to ensure fiscal viability, with non-feasible projects being discontinued.