Minister Ghising Blames Paused Budget for Slow Development Spending

A delay in budget release has emerged as a major cause behind Nepal’s weak development spending in the first quarter, according to Energy, Water Resources and Irrigation Minister Kulman Ghising.

Speaking at the Public Policy and Delegated Legislation Committee meeting, Minister Ghising said development work across three ministries stalled due to a paused budget of nearly Rs 195 billion. The Ministry of Urban Development alone has seen Rs 61 billion withheld.

He argued that the first-quarter spending looks low only on paper. “If we remove the paused amount, our progress crosses 20 percent. The current figures don’t show the real work happening on the ground,” he said, adding that the recent Gen Z protest also slowed multiple projects.

The Minister informed the committee that contractors failing to meet repeated deadlines have been penalised. Out of 269 projects under process for contract termination, 49 have already been cancelled.

He also admitted that some proposals were approved without proper planning and said the government is ready to cut the budget for such unproductive projects. The focus, he noted, should shift to essential infrastructures, including long-awaited bridges in Jumla and Humla.

Ghising added that he is holding discussions with the Finance Ministry and the Prime Minister to resolve the budget issue. He said reconstruction work is moving quickly and that upcoming energy, irrigation, road and urban development projects will progress at a faster pace.