Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: In an effort to cut costs, the government has decided to abandon the projects that did not get underway by the middle of April.
The government, according to the Ministry of Finance (MoF), has decided not to move forward with projects that have not begun their preliminary work.
A representative of the MoF said, “The government’s decision will have an impact on a number of new projects that have been allocated Rs 20 billion in investments.
Due to a significant shortfall in revenue collection compared to the desired amount, the government has implemented austerity measures to reduce public spending. Nearly Rs 350 billion less revenue was collected in the first nine months of the current fiscal year than was anticipated.
The government set a revenue collection goal of Rs 1.403 billion for the current fiscal year. However, as of the first nine months, the collection was only 49.29 percent of the total.
By the middle of April, the government should have received Rs 1.044 trillion, in order to meet the revenue collection target. The Financial Comptroller General Office’s records, however, indicate that the actual amount collected was only Rs 691.66 billion.
The government enforced austerity measures a few months ago and announced to cut expenses in a number of categories, citing the severe shortfall of financial resources.
The ministry has already narrowed down the projects, and according to a MoF source, it has sent a circular to the line ministries asking them not to move forward with projects that are not currently of high priority.
While this is going on, the MoF has requested that the relevant authorities refrain from hosting conferences and seminars at taxpayer expense. The ministry has also completely stopped disbursing money under 22 subheads.
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