Irregularities in Gandaki Budget: Industry and Tourism Allocated 200 Million Instead of Expected 920 Million

2 Asar, Pokhara — After Gandaki Province government presented the budget statement in the parliament on Monday, discrepancies noticed sparked disputes among members of parliament and ministers.

Finance Minister of Gandaki Province, Jeet Sherchan, presented the budget for fiscal year 2083/084, revealing inconsistencies between the ceiling and the actual budget statement allocated for the industry and tourism sector.

Minister Sherchan announced a total budget of NPR 3.2999 billion, stating NPR 200 million was allocated specifically for the industry and tourism sector.

The Ministry of Finance’s website also reflected the NPR 200 million budget allocated to industry and tourism.

However, a committee led by the Vice-chairman of the Policy and Planning Commission initially set a ceiling of NPR 647.642 million for the Industry and Tourism Ministry, which was later revised to NPR 924.9 million in the finalized budget.

Minister Sherchan emphasized the importance given to industry and tourism by allocating NPR 200 million, matching the budget of the Ministry of Agriculture, Land Management, and Cooperatives. Even Tourism Minister Yashoda Rimal appeared surprised when the NPR 200 million allocation was mentioned.

When ministries sent the budget and programs, only NPR 924.5 million had been submitted. Other ministers were also unaware of how this figure was increased to NPR 2 billion. As MPs started questioning the issue, the controversy deepened, with some even calling for clarifications.

The question remains: How did the NPR 924.5 million budget grow to NPR 2 billion? This confusion caused misunderstandings and unrest among government ministers and parliamentary members. On Monday evening, the finance minister, tourism minister, and secretaries held discussions.

Even though a ceiling of NPR 2 billion was designated for tourism, the schedule listed only NPR 924.5 million. The inclusion of NPR 2 billion in the budget statement led to disagreement between ministers and secretaries over how to reconcile these numbers.

What is the actual situation? Staff members became active to reconcile this by preparing a list that included programs from other ministries related to industry and tourism, aiming to reach the NPR 2 billion figure.

This included seventeen budget titles such as rural agricultural tourism promotion programs, grants for agricultural entrepreneurs, agricultural development enterprise programs, infrastructure projects like Tilche, Tachai, Bagarchap, Ghailanchok, Odar, Merkudanda, Gherang, trail construction projects including Tal Padmarg and Dhaulagiri institutions and companies’ share investments, Film-Larke Pass trail, Chief Minister’s Innovation Partnership Program, alternative tourism routes, and various programs related to culture, language, and archaeology.

Accordingly, Minister Sherchan prepared to respond by affirming the NPR 2 billion allocation for industry and tourism, with ministers and staff planning to present the explanation.

Displaying programs from one ministry under another’s ceiling has the potential to cause fluctuations in the budget ceiling, leading to increased confusion. On Tuesday morning, Tourism Minister Rimal met with Finance Minister Sherchan but no resolution was reached during their discussion.

Finance Minister Sherchan stated that NPR 2 billion had been allocated for industry and tourism, but some programs would be implemented through other ministries. Attempts were made to count the Chief Minister’s Innovation Program within industry and tourism to reach the figure, but the accounts did not tally. Staff ultimately acknowledged this process as a mistake.

As concerns about the tourism budget discrepancies escalated, officials from the Ministry of Finance, including the secretary and under-secretaries, met with the Chief Minister. Later, the Chief Minister, Surendra Raj Pandey, and other ministers held a discussion. The consensus was to correct the budget statement rather than justifying it by adding other ministries’ programs, as doing so might lead to further errors during parliamentary proceedings.

Since the schedule lists NPR 924.5 million, it was deemed appropriate to acknowledge the mistake and inform the parliament accordingly.

“We, including the Chief Minister, were part of the team. The ministry’s budget is as per the schedule (NPR 924.5 million). However, during the process of addition, other items appeared,” Finance Minister Sherchan explained. “We have decided to rectify this and report the technical error in the upcoming parliamentary session.”

The provincial government has continuously supported programs like “Pahila Ghar Desh: Ani Pardesh” and “Lake to Lake” under the industry and tourism sector. These include projects such as the Selfie Bridge at Phewa Lake and the Glass Bridge in Rupa.

Pokhara is planned to be developed as a hub for MICE (Meetings, Incentives, Conferencing, Exhibitions), health, sports, and adventure tourism. Included are the “Round Phewa: View Phewa” project, religious tourism circuits, upgrading of Manaslu–Annapurna–Dhaulagiri–Dhorpatan trails, and an information technology park.

The province’s budget prioritizes infrastructure development, tourism promotion, agricultural modernization, health service expansion, education reform, and good governance.

The largest allocation of NPR 1.196 billion targets physical infrastructure and transportation. Strategic roads, bridges under the Korala–Tribeni project, the Seven Lakes ring road, Shaligram corridor, rural roads across districts, and multi-year plans will be pursued as priorities.

Energy, water resources, and drinking water receive NPR 477 million. The target is to extend electricity access to all households within the fiscal year and allocate NPR 331 million for health sector improvements.

Investments continue in city scanning machines for Gorkha and Nawalpur, construction of regional general and communicable disease hospital buildings, maternal and neonatal health, health insurance, cancer treatment support, and air rescue programs for at-risk pregnant women.

Social development, youth, and sports sectors have NPR 216 million allocated. The agriculture, land management, and cooperative sector also receives NPR 200 million focusing on agricultural modernization, production-based grants, protection of indigenous crops, agricultural ambulance service, digital marketplace operation via an agricultural app, and the “Return to Village” campaign. NPR 30 million is designated to expand fruit and nut farming on 2,500 hectares in hilly areas.

Forestry and environmental conservation are allocated NPR 121 million. The provincial government aims to make the revenue system more digital and taxpayer-friendly.

Federal government grants, revenue sharing, royalties, and internal revenue will be the main sources of budget implementation, alongside a goal to mobilize NPR 175 million in internal loans.

Gandaki Province has allocated NPR 1.272 billion (38.56%) for recurrent expenditures, NPR 2.002 billion (60.68%) for capital expenditures, and NPR 25 million (0.76%) for financial management in fiscal year 2083/84.