SATV, Kathmandu, July. 29 - Budget execution and project implementation in Bagmati Province have been adversely affected by the large number of small, fragmented development projects, officials have said.

Speaking at the annual progress review meeting for the fiscal year 2025/26, organised by the Ministry of Drinking Water, Energy and Irrigation in Hetauda on Monday, participants said delays in budget releases and an excessive number of projects relative to available manpower as key obstacles to effective implementation.

Participants stressed that budget certainty should be ensured on time, noting that when budget allocations are confirmed only in April and May, significant difficulties arise in executing development projects.

The meeting also highlighted that the reduction in the number of offices under the ministry has affected service delivery, with officials stressing the urgent need to complete the Organisation and Management (O&M) Survey to address staffing and structural issues. 

During the last fiscal year, the ministry spent Rs. 7.396 billion, or 86.77 per cent, of its total allocated budget of Rs. 8.524 billion. According to ministry data, Rs. 911.5 million in unsettled audit observations (irregularities) remain to be resolved.

Addressing the programme, Minister for Drinking Water, Energy and Irrigation Krishna Kumar Tamang said the ministry had reduced the number of fragmented projects in line with its policy to prioritise larger and more effective development schemes during the current fiscal year.

He said the ministry had inherited a backlog of projects but was now introducing policy reforms to streamline implementation. As a result of these reforms, the ministry’s overall performance and progress had improved.

“The impact of the Gen Z movement, the federal elections and rising inflation has been felt across all sectors,” Minister Tamang said. “The ministry is focused on the effective management of ongoing projects, the timely completion of multi-year projects and a strategy to reduce fragmented schemes.”

He added that work on the ministry’s Organisation and Management (O&M) Survey was in its final stage and would soon be completed after approval by the provincial cabinet.

Ministry Secretary Indra Dev Bhatt said efforts were under way to reduce outstanding audit irregularities while improving the overall management of the ministry and its subordinate offices.

Ministry spokesperson Megh Raj Awasthi said that 467 drinking water projects had been completed during the last fiscal year, with 16,861 new private household water connections installed.

Deputy Secretary (Accounts) Govinda Adhikari said the growing volume of unsettled audit observations had become a major challenge. The programme also featured annual performance reviews presented by offices operating under the ministry.