From the total capital budget of Nu 19.6 B, over Nu 4 B, which comes to over 21 percent, was not utilised, last year.
Members of the Parliament, in the joint sitting today, said the tendering process contributed to the budget being underutilised.
The discussion came up when the Public Accounts Committee put up the Annual Audit Reports for deliberations.
“While tendering works, the budget for the projects comes down by at least 20 percent,” said the finance minister, Namgay Dorji.
The Opposition Leader, Dr. Pema Gyamtsho said the underutilisation of capital budget is because of improper tendering process.
He said one of the loopholes is the start date of fiscal year which begins from July.
Instead of July, the Opposition Leader said a fiscal year should begin from January which would allow enough time for planning and execution of the projects.
If a fiscal year is to begin from January, Dr. Pema Gyamtsho said the weather condition would also be favourable to carry out and complete the projects on time.
As compared to 2014, there was also an increase in underutilisation of the capital budget by over Nu 1.3 B.
Over Nu 2.5 B capital budget was not used in 2014.
Public Accounts Committee’s Chairman, Dophu Dukpa said the underutilisation of fund would have implications on the effective and optimal use of borrowed funds.
The deliberation will continue tomorrow.
