The Surge in Small-Scale Infrastructure Requests
Kathmandu, April 26 — A growing number of parliamentarians are pushing for the inclusion of small-scale infrastructure projects in the upcoming national budget. These requests, which often involve roads, bridges, and local development works, have raised concerns among officials and experts about the federal government’s role in such matters.
The Ministry of Physical Infrastructure and Transport has been receiving a steady influx of proposals from lawmakers. According to the ministry, over 686 project proposals have already been submitted, with at least 14 classified as low-budget projects costing less than Rs10 million. Some of these proposals lack specific budget details, while others include detailed cost estimates for multiple projects within a single district.
“We are receiving between 100 and 150 project requests every day,” said Ramhari Pokharel, joint secretary and spokesperson at the ministry. “Even though such proposals are registered here, they are forwarded to the Department of Roads, which evaluates them before sending them to the National Planning Commission.”
This trend is not new. In previous years, the number of requests could reach as high as 10,000 before the budget was finalized. However, the current pressure from elected representatives remains significant, with only those endorsed through proper evaluation eventually making it into the national plan.
Concentration of Small-Scale Projects
A closer look at the submitted proposals reveals a concentration of small-scale projects in districts such as Rautahat and Kailali. In Rautahat’s Durga Bhagwati Rural Municipality alone, multiple requests have been filed for road upgrades, culverts, and drainage works, with budgets ranging from Rs2 million to Rs8 million.
Proposals include constructing an RCC culvert bridge from Chandeswar Das’s house to Gangapipara with a budget of Rs5 million, upgrading a road from Swarup Pandit’s house to a pond for Rs3.5 million, and improving a road stretch from Baudhimai Temple to Brahmasthan for Rs2 million. Additional proposals include road upgrades between private residences and local landmarks, with costs ranging from Rs4 million to Rs8 million.
Similar trends are observed in Kailali, where a proposal seeks Rs2 million to blacktop a road segment under the Bainiya Bhajani road section. This request was submitted by Komal Gyawali, a Rastriya Swantantra Party (RSP) lawmaker elected from Kailali-1. Two additional projects worth Rs5 million each have also been proposed in the same area.
Lawmakers from multiple political parties—including the RSP, Nepali Congress, CPN-UML, and others—have submitted such proposals. Notably, 17 projects involving roads and suspension bridges in Rukum East have been proposed through former prime minister Pushpa Kamal Dahal, the coordinator of the Nepali Communist Party who was elected from Rukum East.
Concerns Over Fiscal Federalism
While parliamentarians defend their actions as necessary to address local needs, planners warn that such demands undermine the principles of fiscal federalism. The National Planning Commission has repeatedly stated that small, fragmented projects should be handled by provincial and local governments, not the federal one.
“The focus at the federal level should be on large, strategic infrastructure,” said Arjun Jung Thapa, a member of the commission. “There are ongoing discussions to ensure that only projects above Rs50 million are included in the federal budget.” According to him, the government is considering a tiered approach, under which projects costing below Rs50 million would be delegated to provincial and local governments. Projects costing between Rs50 million and Rs300-400 million may be handled by the Department of Local Infrastructure Development, while larger schemes exceeding Rs600-700 million would fall under the Department of Roads.
“There is also a proposal to include only one major project per constituency under the Department of Roads,” Thapa said. “Smaller road projects connecting wards or settlements should be managed locally.”
Streamlining Project Selection
The push to streamline project selection comes amid the implementation of the National Project Bank Guideline-2024, which aims to ensure better planning and avoid duplication across the three tiers of government. The standards specify minimum budget thresholds for projects to be included in the federal, provincial, and local project banks.
Despite these provisions, small projects continue to be proposed at the federal level. Officials say this reflects political pressure as lawmakers seek to deliver visible development outcomes in their constituencies.
The Ministry of Finance has set a budget ceiling of Rs123 billion for the Ministry of Physical Infrastructure and Transport for the upcoming fiscal year. Of this, Rs31 billion has been earmarked for the Kathmandu-Tarai Expressway, a national pride project being implemented by the Nepali Army. The Department of Roads is expected to receive Rs82 billion, with Rs80 billion allocated for capital expenditure.
Challenges in Prioritization
Data from the National Planning Commission show that only a fraction of proposed projects make it into the official project bank. According to Diwakar Luitel, information officer at the commission, out of 7,009 projects submitted from across the country, just 1,642 have been entered into the system so far. These include 77 ongoing projects, 262 new ones, and 1,303 currently under study.
Province-wise, the highest number of proposals has come from Koshi Province with 1,369 projects, followed by Bagmati with 1,309 and Madhesh with 1,131. Other provinces have also submitted hundreds of proposals, reflecting widespread demand for infrastructure development.
Officials say the challenge lies in balancing political demands with technical and financial feasibility. “Not every project can or should be funded by the federal government,” said Pokharel. “We have to prioritize based on national importance and long-term impact.”
Experts warn that continuing to fund small, scattered projects from the federal budget could strain resources and delay larger infrastructure works. Various reports show how fragmented spending has often led to delays, cost overruns, and underutilized assets.
