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Kathmandu Tuesday December 18, 2001 Paush 03, 2058.
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PM Deuba seeks support from donors
By Satyendra Timilsina
KATHMANDU, Dec 17 – Prime Minister Sher Bahadur Deuba today formally
requested the donor agencies to provide additional support to help the government continue
with the ongoing development projects.
The government has been forced to divert a huge amount of development budget
to finance growing security expenses, rendering the already constrained development
projects further uncertain, in the wake of state of emergency.
Prime Minister Deuba made the request to the representatives of several donor
agencies while briefing the current economic situation after the imposition of state of
emergency here today.
In a bid to woo the donor agencies, the government assured the donors that
anti corruption bill is being tabled in the parliament through an ordinance within the
next week, with an aim to strengthen resource mobilisation.
Representatives from bilateral and multilateral donor agencies including
European Union, United Nations Development Programme, Asian Development Bank, World Bank
and United States Agency for International Development attended the meeting.
Representatives of the governments of the United Kingdom and Japan were also present on
the occasion.
Prime Minister Deuba informed the donor agencies that the government is
prioritising development programmes so that donor-funded and high-cost development
projects would be affected, Madhu Raman Acharya, acting secretary at the Ministry of
Foreign Affairs quoted PM Deuba as saying.
Meanwhile, a highly placed official at the Finance Ministry has revealed that
the government has expected an additional Rs 4.5 billion to finance the increasing
security expenses. And the government is preparing to present supplementary budget to
transfer resources from development expenditure to security expenses. The government is
also planning to mobilise more revenue through new sources and even readjusting them if
necessary.
One of the representatives of donor agencies said that the government has
requested a financial assistance of Rs 5 billion to support the rural development
programmes. "Donor agencies have expressed apprehension over the misuse of the
available funds," added the source.
"However, donor agencies have positively responded to the
government’s request and the meeting made deliberations on running the rural
development projects successfully", said Minister for Physical Planning and Works
Chiranjibi Wagle.
The growing security expenses is expected to affect about 25 per cent of
development programmes, says Prithivi Raj Ligal, vice chairman of National Planning
Commission. However, the actual effects can only be seen after tracing out the
requirements for the additional security expenses, he added.
Ligal told The Kathmandu Post that the donors raised the issue of democratic
norms and human rights, but were positive towards government’s proposal. "We are
hopeful of further financial support," said an optimistic Ligal.
According to the latest statistics of Nepal Rastra Bank, the total
expenditure during the first three months of the current fiscal year has gone up
significantly resulting in a budget deficit of Rs 3.66 billion. The government has already
drawn an overdraft of Rs 3.5 billion during this period to finance the deficit.
A press release issued by the Ministry of Foreign Affairs after the meeting
stated that donors supported the government’s move and assured of continuing their
support to the ongoing development projects for the sustainable development of Nepal.
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