Kathmandu: Development projects allocated less than Rs 30 million under political influence have been halted. The Cabinet meeting on Sunday made this decision.
To reduce expenditure, the Cabinet decided to freeze small projects below Rs 30 million, as well as projects above Rs 30 million that were not entered into the Project Bank, projects entered into LMIS but kept outside the Project Bank, and projects pushed through political pressure.
According to Finance Minister Rameshore Khanal, based on records in the Finance Ministry’s information system, identifying such projects could save around Rs 1.2 trillion (including current expenditure).
He stated that the saved funds would be used to clear outstanding payments for works already completed by various ministries.
This, he explained, would at least help resolve the problems of the construction sector, eliminate unnecessary projects, and allow the saved funds to be invested in accelerating national pride projects and other large-scale developments.
The government has also decided to establish a Reconstruction Fund, which can receive contributions from both inside and outside Nepal. Banks and financial institutions, as well as industrial enterprises, will be able to contribute their CSR funds into the fund, with tax deductions allowed on such contributions.
To manage this, a Physical Infrastructure Reconstruction Committee will also be formed.
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