A cabinet meeting on Thursday took the decision to issue the directive with a view to channel more budgetary resources for reconstruction work in the earthquake-affected areas.
The Ministry of Finance (MoF) had put forward the austerity proposal in the cabinet as cutting down on unnecessary spending would be crucial in the reconstruction work.
Endorsing the proposal Thursday, the government directed all the ministries and other government bodies to cut unnecessary spending as far as possible, informed Sports Minister Purushottam Paudel.
He said that all the ministries and other government bodies have been directed to cut down on unnecessary domestic as well as foreign visits, to appoint government officials only if it is very essential, and to not depute any government staff at all.
“Likewise, the ministries and other bodies have also been directed to avoid the purchase of unnecessary vehicles and strictly minimize their fuel expenses. The government bodies have also been asked to refrain from organizing any workshops or other programs as far as possible,” said Minister Paudel.
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The cabinet has likewise decided to cut back on all kinds of incentives to government employees.
The cabinet has forwarded the austerity proposal of the Finance Ministry to its Finance and Infrastructure Committee and instructed the latter to come up with a detailed proposal on how to cut unnecessary thematic expenses.
“The austerity measures suggested by the committee would be applied to minimize other administrative expenses” he further said.
Though the government has only now decided to adopt the austerity measures, some ministries and government bodies have already started cutting down on unnecessary spending and submitted the amounts saved to the government for the rehabilitation of quake-victims.
The Ministry of General Administration submitted Rs 35 million, allocated for the purchase of new vehicles, to the government for the rehabilitation to quake victims. Likewise, the Parliament Secretariat also decided not to include meat items while serving lunch to lawmakers and staff, for at least six months, in a move to minimize unnecessary expenses.
“Many ministries and government bodies would have adopted austerity measures before but they were waiting for the cabinet’s decision. Minimizing administrative expenses will help save a huge chunk of government funds,’ said Minister for General Administration Lal Babu Pandit.
The government has allocated Rs 398 billion as recurrent expenditures in the current fiscal year. This is to be spent on salaries, pensions and other administrative heads.
Likewise, the cabinet also decided to form an all-party committee as per a proposal floated in the 27-point resolution motion in parliament. The committee will offer suggestions to the government in policy making and other key decisions with regard to disaster management, rehabilitation and reconstruction for the quake-victims.
