The Lumbini provincial government has decided to adopt austerity measures for the ongoing fiscal year amid concerns over the country’s strained economic situation and potential resource shortfalls.
A Cabinet meeting held Saturday, October 11, directed all provincial offices and subordinate agencies to limit expenditure to a maximum of 80 percent of the allocated budget under current plans and programmes. The move aims to ensure fiscal discipline and prioritise essential spending.
The meeting also endorsed additional expenditure control measures based on guidelines from the Ministry of Economic Affairs and Planning.
As part of the austerity plan, the government instructed offices to freeze 20 percent of the funds under various headings.
In the capital expenditure category, 20 percent of the allocated budget will be frozen for projects financed through supplementary grants, multiyear projects, and those other than regular road maintenance works.
Similarly, under current expenditure, 20 percent of the budget earmarked for monitoring and evaluation, programme expenses, office operations, miscellaneous programmes, skill development, training and workshops, and consultancy services will be withheld.
According to government spokesperson and Minister for Agriculture, Land Management and Cooperatives Dinesh Panthi, the Cabinet also decided to form a three-member committee led by the Chief Secretary to study and recommend policy, legal, and administrative reforms to promote good governance in the province.
(With inputs from RSS)
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