Kathmandu: The government’s growing reliance on external consultants, even for tasks that its own staff could handle, has come under scrutiny after billions of rupees were spent on consultancy services in development projects.
A recent report by the Office of the Auditor General raised serious concerns over consultancy-related spending in projects under the Ministry of Agriculture and Livestock Development.
Nepal’s Public Procurement Act, 2007, allows the hiring of consultancy services only when the required work cannot be carried out using available in-house manpower. In practice, however, consultants have increasingly been hired for routine functions such as project implementation, monitoring, evaluation, and procurement management — tasks normally performed by government employees.
According to the report, four major agriculture-sector projects spent a combined Rs 4.73 billion, of which Rs 532.7 million — or 11.26 percent — went toward consultancy services alone.
Among the projects, the Hill Area Fruit and Nut Development Project recorded the highest consultancy expenditure, allocating 26.85 percent of its total spending to consultants.
Similarly, the Food and Nutrition Security Enhancement Project spent 11.83 percent of its budget on consultancy services, while the Rural Enterprise and Economic Development Project allocated 6.44 percent and the High-Value Agriculture Commodities Promotion Program spent 9.80 percent.
The Auditor General’s Office noted that previous audit reports had repeatedly urged government agencies to curb unnecessary consultancy expenses. Despite those warnings, public institutions continue to depend heavily on consultants instead of mobilizing their own workforce.
“The issue of controlling such expenses by using government manpower instead of procuring consultancy services for activities like project implementation, monitoring, and evaluation has been highlighted in previous reports as well, but the situation remains unchanged,” the report stated.
Experts say the growing use of consultants for routine government functions has not only inflated project costs but also raised questions about the effectiveness and accountability of public sector employees. They argue that stricter oversight and stronger accountability mechanisms are needed to prevent misuse of public funds.
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