“We will be left with no options than to go into protests if the government does not give our payments by this fiscal year end”

KATHMANDU, July 12: Contractors have warned to launch a decisive protest if the government fails to clear their outstanding dues of around Rs 60 billion by this fiscal year end.

Organizing a press meet on Thursday, the contractors said the entire supply chain of the economy has undergone adverse situations due to the government’s apathy to release payments for the development works. “The government has kept pending the payments due for the past two years,” said Roshan Dahal, general secretary of the Federation of Contractors’ Associations of Nepal (FCAN).

With only a week left for the current fiscal year to end, the government has already frozen its accounts since Monday. The government recently released only Rs 15 billion to pay to contractors via budget transfers although the government ministries related to the infrastructure development projects sought the Ministry of Finance to disburse Rs 35 billion. The contractors said they are yet to receive the amounts due to various technical issues.

According to the FCAN, the government owes the financial liability of Rs 40 billion to contractors following the 13th amendment to the Public Procurement Regulations. Likewise, the government is left to release Rs 20 billion to finance the projects that are under construction.

Dahal said the MoF has been refusing to release additional funds through budget transfers. The ministry has said it cannot release money to projects which were awarded contracts without affirming the financial sources.     

According to the government rule, the MoF cannot carry out budget transfers in the first three months of every fiscal year. Based on this provision, contractors might not get their next payment till mid-October of FY 2024/25. 

 
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• FCAN
 
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