Resource information
The report is an overview of
Nepal's economic development, comprising five volumes,
which include the main report, followed by reviews on
agricultural and rural development, on the social sectors,
and, the transport sector. Although development progress is
noteworthy in many areas, considerable evidence of improper
resource spending exist, thus, the main objective of this
report is to identify the incentives, and institutional
factors that contributed to this spending, and propose
recommendations. Systemic factors have consistently hindered
implementation, and development results, such as deficient
budget planning, resource allocation, and expenditure
management, coupled with the lack of ownership of projects,
and programs which contributed to poor performance.
Institutional weakness, and governance issues remain the
most critical aspects affecting effectiveness of public
spending across sectors in Nepal. The report suggests that
traditional budget reforms alone, will not be effective to
improve public resource management, rather, changes in the
political environment, and institutional capacity are
required, prior to the much needed reforms. Given the fiscal
constraints, the government should promote private
participation to undertake economic activities, and, further
enhance and promote, public involvement in social sectors
development, and greater local ownership of public
expenditure programs.
