Friday Sep 29, 2023
Friday Sep 29, 2023

MoF to slash recurrent expenses; Around 25 billion rupees to be saved

2023 Feb 01, 8:47, Kathmandu
Representative Illustration (Image Source: Flickr)

The Ministry of Finance (MoF) has decided to cut off recurrent expenses as part of its austerity measure.

In a bid to keep public finance in balance, the government came up with a decision to cut off regular spending. The ministry has decided to increase spending on national pride and game-changer projects, and those substantially contribute to the creation of jobs by re-prioritizing budget expenditure systems.

As informed, the ministry has decided to slash 20 percent of budget spending incurred in different headings of the approved budget of all ministries/agencies of the federal government, including fuel, maintenance, stationery and office assistance, newspapers, printing and publication of information, service, and consultancy.

Likewise, the budget approved for information system and software operation, travel and other allowances, program cost, monitoring and evaluation cost, staff training, workshop and seminar, sundry expenses, machinery and equipment, furniture and fixtures and structural improvement of the buildings would also be reduced by 20 percent.

The ministry has also decided to proceed with the procurement process of the projects having approved the budget and program of the current fiscal year, which procurement has not yet started, on the approval and consent of the MoF.

The ministry has also decided not to undertake any organization and management survey in a way that new vacancies are created, not to add new vacancies and not to depute employees exceeding the vacancy quota without prior approval of the MoF.

In the case of foreign trips at programs requiring compulsory participation of government representatives on public money, the ministries concerned should take approval from the MoF. No agency and level would decide to create additional burden without approval from the MoF, the decision noted.

The ministry has decided to stop the execution of budgetary projects and programs which are yet to start and not to create an extra burden of payment in the current fiscal year. The decision applies to all universities, foundations/academies, regulatory bodies, boards, and all constitutional bodies.

The ministry decided to ask the province and local governments to reduce expenditure, excluding mandatory obligations under the recurrent heading by 20 percent.

With the implementation of the decision, a total of Rs 10.5 billion would be saved and the projects with an approved budget amounting to Rs 14 billion would be held, states a press release issued by the MoF on Tuesday.



MoF Ministry of Finance budget expenditure slash recurrent expenses 25 billion rupees to be saved
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