A livelihood project being implemented under the Nepal Peace Trust Fund (NPTF) for the conflict-affected people may see a premature end due to uncertainty over resource allocation as a result of freezing of the entire budget allocated last fiscal year.

Although the budget for the project is supposed not to be frozen as per the NPTF Operation Regulations, the budget of Rs335 million set aside for the scheme was frozen in the fiscal year 2015-16, according to officials.

The ‘Support to Conflict Affected People’s Livelihood’, being implemented under the third phase of the NPTF, is supposed to benefit around 16,000 conflict victims. The third phase has been in implementation since 2014.

An assessment of the need of the war-affected people for livelihood, skill training, entrepreneurship training and job placement for them are among the activities

fixed under the project.

The Industry Ministry, the Council for Technical Education and Vocational Training, and the Federation of Nepalese Chambers of Commerce and Industry are among the actors identified to implement the project.

Sanjaya Kumar Khanal, executive director of the NPTF, said the total budget

for the two-year project is Rs435 million.

“If we don’t get last year’s frozen amount released, it will be impossible to implement the project with the Rs100 million allocated in the current fiscal year,” he said.

Officials said the lack of preparations for identifying the project activities to be implemented last year and a lack of regular follow-up with the Finance Ministry were among the reasons behind the current uncertainty in project implementation.

Khanal admitted the delay in project preparation on the NPTF’s part. The Industry Ministry is of the view that it should not be blamed for the frozen budget because it is just an implementing agency.

“Although we implemented activities under the project in several districts in 2014-15, we didn’t get programmes from the NPTF last fiscal year,” said Yam Kumari Khatiwada, spokesperson for the Industry Ministry. “Once the NPTF gives us the programme, we sign an agreement with it for its implementation.”

According to officials, there have been discussions on whether and how to release the frozen funds but no solution has been found.

“If the government keeps frozen budget under the

emergency budgetary heading and releases the amount for the project, it may be a solution,” said Rajendra Prasad Nepal, the financial comptroller general.