Karnali reports progress in economic and budgetary reforms
Karnali Province has shown recent improvements in its economic indicators, according to the provincial government. Chief Minister Yam Lal Kandel said his administration is prioritizing reforms in policy, implementation, and transparency to ensure more effective governance.
He highlighted improvements in budget expenditure, transparency in project selection, and priority-based policymaking. Kandel emphasized that the government is preparing infrastructure for budget implementation, selecting projects based on development needs rather than political influence, and allocating funds through a project bank. He also underlined a clear policy of not moving forward with projects lacking assured resources.
“Plans will no longer be chosen on the basis of political access, and the era of ‘planning without funding’ has ended,” Kandel said. He added that projects are now being taken to the tender stage on time, with measures in place to ensure their completion.
The provincial government has also strengthened its monitoring system to ensure transparency in expenditures and budget execution. This fiscal year, the administration has prioritized frugal spending, cutting unnecessary allowances, limiting formal events, and curbing wasteful activities—steps that Kandel said reflect the government’s commitment to financial discipline. Provincial Assembly member Daxina Shahi remarked that the current government is setting standards in planning, budget allocation, and public services.
Karnali, once criticized for failing to spend its budget, spent 65 percent in the last fiscal year—close to its target—compared to less than 60 percent in previous years despite setting an 80 percent spending goal.
Agriculture has also been placed at the center of economic policy. Kandel said agriculture is being developed not only as a livelihood but as the backbone of a self-reliant economy. The government is focusing on agricultural registration, concessional loans, seed and fertilizer supply, irrigation infrastructure, and strengthening cooperatives. He added that the government aims to end the narrative of politicians claiming sole credit for development projects.
Under new arrangements, all projects are approved by aligning recommendations from the Provincial Planning Commission, local government priorities, and ministerial agendas. This approach, officials say, will not only improve budget utilization rates but also increase the likelihood of project completion.
Minister for Physical Infrastructure Development Sher Bahadur Budha acknowledged that negligence by contractors has delayed several major projects in the past, but noted that legal action has been initiated against defaulters. He said the government aims to achieve significant improvements in capital expenditure this fiscal year.
Despite progress, challenges remain. Some projects still fail at the initial stage, remain incomplete, or face accountability issues from past unfinished works. Provincial Planning Commission member Dambar Rawal said that stronger evaluation, tracking, and monitoring systems are needed to ensure projects address people’s needs rather than political influence.
He added that the commission is working on balanced and regionally just planning, with a focus on self-reliant and inclusive economic growth—an approach that, according to him, will yield tangible results in the coming years.
