The Finance Ministry ‘cites lack of resources’ for its inability to fund local governments’ purchase of 850 Sports Utility Vehicles (SUVs) requested by the Ministry of Federal Affairs and the Local Development (MoFALD).

Two months ago, the Local Development Ministry had sought Rs3.4 billion from the Finance Ministry for providing funds to the local governments to purchase the SUVs. Along with the budgetary demand, the Local Development Ministry had forwarded a standard to purchase vehicles.

As per the standard proposal, the rural municipalities will get funds for purchasing one vehicle each while newly formed municipalities will receive cash to purchase two vehicles each.

The existing municipalities receive funds to purchase one vehicle, while newly promoted sub-metropolitan cities also get funds to purchase additional one vehicle. Budget has not been sought for purchasing vehicles for metropolises and old sub-metropolises. As per the proposal, a budget of Rs4 million has been sought to purchase an SUV.

Finance Secretary Shankar Prasad Adhikari was unaware whether such a proposal was forwarded to his ministry. He ruled out the probability of providing budget to purchase new vehicles for local governments. “We don’t have budget for such expenses,” he told the Post.

Adhikari said the vehicles could be purchased in the future after disbanding unwanted ministries and departments as suggested by the Federal Administrative Restructuring Committee headed by Minister for General Administration.

The high powered committee recommends retaining 15 ministries at the centre and seven at the provinces. Currently, there are 31 ministries at the centre.

“After the provincial elections were held, the Finance Ministry arranged 20 vehicles for the provinces,” said Adhikari, “The local governments have to wait to get vehicles until offices not required are disbanded.”

Officials at the Local Development Ministries say they constantly get inquiries from local governments seeking vehicles. Lack of vehicles restricts their mobility, they complain. There are 460 rural municipalities, 276 municipalities, 11 Sub-Metropolises and six Metropolises.

Local Development Ministry Joint Secretary Suresh Adhikari said, “Hardly any rural municipality and newly formed municipalities have any vehicle currently.”

The ministry officials say they submitted the standards and sought budget for vehicles from the Finance Ministry to bring uniformity in vehicle purchases by the local governments.

Local Development Ministry Secretary Dinesh Thapaliya said, “The local governments need at least a vehicle for their mobility. If we fix certain standard for vehicle purchase, it will prevent them from spending lavishly on expensive vehicles.”