No Room for Ill-Planned, Piecemeal Projects: FM Khanal

Finance Minister Rameshore Khanal has said that fragmented projects lacking prior preparation will no longer be implemented, stressing that immediate spending cuts are essential to meet the priorities of the interim government.

Speaking at a welcome ceremony at the Finance Ministry on Monday, September 15, Khanal said the government’s immediate focus must be on addressing the demands raised by youth protesters and holding elections to the House of Representatives within six months.

We will need resources to hold elections. Since the current fiscal year’s budget did not account for it and there are no provisions for a supplementary budget or other preparations, we are left with two options, said  Khanal.

“First, to cut allocations for unnecessary spending within the existing budget; second, to withdraw funds allocated to unprepared projects that were added to the project bank at the last minute under political pressure, without proper study,” he added.

He estimated that around Rs 100 billion could be mobilised this way, which would be used for the right purposes — primarily to conduct the elections.

“Around 100 youths have sacrificed their lives to bring change — it is our collective responsibility to honour their legacy,” Khanal added, adding that corruption must be rooted out completely. “There can be no excuse for wrongdoing—whether done knowingly or unknowingly.”

Khanal, who has taken charge of the country’s finances amid a turbulent period, said he would work in line with the spirit of the youth-led protests that were launched demanding good governance and fighting corruption.

A veteran at the Finance Ministry, Khanal became revenue secretary in August 2006 and later served as finance secretary from August 2008 to April 2011 and as. He recently chaired the High-Level Economic Reforms Recommendation Commission, which submitted a 450-page reform report to the KP Sharma Oli government, which was toppled by youth-led protests last week. He pledged to implement its key recommendations.

During his tenure as secretary, Khanal worked under several finance ministers, including Dr Ram Sharan Mahat, Dr Baburam Bhattarai, Surendra Pandey, and Bharat Mohan Adhikari. He notably resigned during Adhikari’s tenure after discovering that the budget was being prepared outside the ministry.

Khanal also said his administration would prioritise rebuilding damaged public properties, including Singha Durbar, which were targeted during last week’s anti-government protests. “Since these properties were not insured, the government will have to bear the cost,” he said. Government buildings, politicians’ residences, hotels, vehicle showrooms and media houses were set ablaze or vandalised during the unrest.

“Youths have entrusted us with this responsibility. They could have taken it on themselves, but they want change — and driving change requires experienced hands. Fulfilling this pledge will require cooperation from all,” Khanal added.

Earlier in the day, President Ram Chandra Poudel administered the oath of office to three newly appointed ministers in the interim government: Khanal as Finance Minister; Kulman Ghising, former managing director of the Nepal Electricity Authority, as Minister for Physical Infrastructure and Transport, Urban Development, and Energy; and advocate Om Prakash Aryal, a close ally of Kathmandu Mayor Balen Shah, as Minister for Law and Home Affairs.

This news has been updated.