Kathmandu: The National Planning Commission (NPC) has introduced a comprehensive five-year action plan aimed at enhancing the efficiency of government spending. The Public Investment Management Action Plan (2081/82-2085/86) is designed to ensure the effective utilization of funds allocated for government, public corporation, and public-private investment projects.

Endorsed during the NPC's meeting on April 23, the action plan addresses the pressing need for a long-term strategy to accelerate development projects, stimulate capital expenditure, and ensure the efficiency of public investment. Dr. Divakar Luintel, Information Officer at NPC, highlighted the plan's significance in addressing the persistent challenges faced in infrastructure construction, where significant portions of allocated budgets remain unutilized across all levels of government.

Delays in project completion lead to increased costs and time overruns, adversely affecting the state's finances and reputation, ultimately impacting citizens. The action plan outlines seven key objectives, including the establishment of a transparent central monitoring system for effective management of the capital project portfolio and phased reforms to the national project bank.

Improvements to the electronic public procurement system are also prioritized to enhance transparency and effectiveness in procurement processes. Additionally, regular maintenance of public structures and infrastructures will be enforced through directive measures, with project chiefs entrusted with specific responsibilities to ensure accountability.

Addressing concerns regarding the lack of integrated data on projects and spending by the three-tier government, the action plan aims to eliminate duplications in development projects. Emphasizing the importance of project selection and preparation, the plan focuses on ensuring adequate project readiness to secure budget allocations, while unviable projects will be discarded.

The introduction of this action plan signifies a proactive approach by the NPC to streamline public investment management, fostering transparency, accountability, and efficiency in the utilization of government funds for sustainable development initiatives.