Kathmandu: The Ministry of Finance has decided to continue essential and ongoing development projects even after budget cuts.
Finance Minister Rameshore Khanal had earlier adopted a policy of cutting unnecessary expenses and halting small and fragmented projects. However, projects that are essential or already in progress will now be allowed to continue and be completed.
Finance Secretary Ghanshyam Upadhyay said the ministry has already circulated notices to all ministries informing them about the budget cuts. He added that ministries have been asked to identify projects that cannot be stopped and must be completed, and the Finance Ministry will issue implementation orders accordingly.
“The ministries concerned have already been informed about the budget reductions,” he said. “Even if the budget is cut, work that has already begun or reached the final stage will be completed.”
The Finance Ministry has set standards through an official circular and, in some cases, has sent letters specifying project names. Following this, the concerned ministries have started collecting details from their departments and divisions implementing the projects.
Implementing agencies are now preparing lists of essential projects and those that would bring greater benefit if completed rather than halted. According to ministry sources, project selection is underway and will be compiled and sent to the Finance Ministry within a few days.
The ministry stated that over Rs 1.2 trillion from the current budget can be mobilized internally, ensuring that the government will not need to depend on foreign donors for funding the upcoming federal parliamentary elections and reconstruction programs.
The government has begun managing the necessary funds for the federal election scheduled for March 4 (Fagun 21) from the current fiscal year 2025/26 budget itself. The Finance Ministry said efforts are being made to avoid relying on donor agencies or neighbouring countries for financial support.
According to the ministry, over 1,300 projects were found to have been included in the current budget but not entered into the project bank. By halting such projects, the government expects to free up around Rs 1.1 trillion in resources.
Additionally, the ministry claimed that another Rs 120 billion can be saved from operational expenses such as seminars, workshops, and meetings. Altogether, with Rs 1.1 trillion from scrapped small projects and Rs 120 billion from administrative savings, the government expects to manage about Rs 1.22 trillion internally.
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