Assessment of the Budget Allocation and Utilization Trend of Mandandeupur Municipality, Nepal

Abstract

Purpose: To assess the budget allocation and utilization trend of Mandandeupur Municipality newly formed municipality in Kavrepalanchowk district under Bagmati province of Nepal.

Design/Methodology/Approach: This was an analytical (ex post facto) research design to look up and to decide on trends of Budget utilization with respect to budget allocation of municipality by the review of the annually published budget book. Calculations like Earn Value Analysis and Trends analysis were done. 

Findings/Result: It was found that, when executing the project, the construction method and design were changed, and the entire element included in the Detailed Project Report (DPR) was not included in the project, like landscape. Also, it was found that one project cost was higher than that of the Detailed Project Report (DPR) and the reason behind it was that all the elements were not included and unforeseeable elements occurred in the project. In this study, it was found that the difference in budget utilization and budget allocation by the municipality ranged from 7.31% to 96.12%. The difference between budget allocation and contract award varies from 4.76% to 69.01%. The difference between contract award and budget utilization ranges from -6.85% to 19.19% and the average percentage is 4.13%. Similarly, these budgetary trends of seal quotation are also found.

Originality/Value: The analysis of the data from Mandandeupur Municipality over five consecutive fiscal years provided valuable insights into the budget allocation and utilization, bidding trends, and contract administration practices in the construction projects. The findings of this study contribute to a better understanding of the challenges and opportunities in project management and budgeting in the context of the municipality.

Paper Type: Empirical Research