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Tuesday, 4 April 2017 00:20 - - {{hitsCtrl.values.hits}}
Only 10 line ministries out of 48 have utilised over 80% of the capital budget allocated to implement capital projects in 2016, a progress report presented to the Cabinet last week revealed.
Prepared by the Department of Project Management and Monitoring, the report also highlighted that six out of 16 ministries which received more than Rs. 10 billion each for the implementation of projects and programs amounting to 88.5% of the capital budget allocation were not able to utilise at least 50% of their total allocation.
The underperforming ministries include some of the key welfare and service ministries such as Health, Nutrition and Indigenous Medicine, Transport, Irrigation and a number of strategic ministries including the Power and Renewable Energy Ministry.
Out of the 48 ministries with capital budget allocations, 13 line ministries were not able to utilise at least 50% of capital budget allocation in 2016, the report stated.
The paper, which was presented by Prime Minister Ranil Wickremesinghe in his capacity as the Minister of National Policies and Economic Affairs in response to a Cabinet discussion held in January on the progress of project implementation through the Capital Budget in 2016, also revealed that only 64%, amounting to Rs. 404.5 billion, of a total of Rs. 627.5 billion allocated to the 16 key ministries had been utilised by them.
According the report, 27 line ministries had unsettled bills from work done during the year amounting to Rs. 28.2 billion. This included outstanding bills costing Rs. 24.4 billion held by the 16 ministries which got the largest share of capital budget allocation.
Only 15 ministries were able to execute 75% of their projects and programs in order to achieve more than 75% of the targeted physical progress of each project. Meanwhile, the report also notes that only half of the projects and programs implemented by the line ministries have achieved more than 75% of the annual physical targets, while 33% of the projects could not achieve at least 50% of the annual targets.
According to the report, delays in land acquisition, a lack of technical staff, a shortage of construction material, delays in the release of imprest from the Treasury and delays related to contractors have been highlighted as causes for the slow progress recorded by ministries.
