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ECONOMY

Govt cuts down administrative expenses in FY 2023/24

KATHMANDU May 31: In order to maintain austerity measures, the government has announced that in the budget for the n...
By Bhuwan Sharma

KATHMANDU May 31: In order to maintain austerity measures, the government has announced that in the budget for the next fiscal year that extra costs for fuel, government employees’ foreign visits, furniture in government offices along with other goods and administrative expenses will be cut.


The government has also announced the decision to cut various allowances that the employees have been receiving. Finance Minister Prakash Sharan Mahat announced the government’s decision to provide government officials who have vehicle privileges with cash incentive rather than fuel. Mahat said that in order to control the increasing expenses incurred in the operation of government  vehicles, officials with privilege of government vehicles will be provided with cash as per the approved criteria instead of vehicles.


Mahat also tightened restrictions on visits to foreign countries. He announced in the budget statement that foreign visits other than mandatory representation on behalf of the Government of Nepal will be discouraged. The endowment of all types of incentives and allowances, overtime allowances, and other benefits for employees will be halted in the next fiscal year.  


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There will be no new acquisitions of vehicles as well as furniture for government offices. Mahat also announced that no new buildings will be constructed in the next fiscal year, except those that are essential. The government has also committed to reintroducing the Civil Service Act, which has been stalled for the past five years, in the upcoming fiscal year 2023/24.


In the budget statement, Mahat promised to reintroduce the act for administration management. "By implementing the Civil Service Act, the civil service will be made competent, prosperous, service-oriented and professional," said Mahat, adding, "Administrative coordination and the relationships between the union, state and local levels will be strengthened."


Mahat promised to gradually implement the recommendations of the High Level Pay Commission. In his budget speech, Mahat said, "Public administration will be made accountable and result-oriented by developing a performance system based on results."


Mahat also promised to gradually implement the recommendations of the High Level Salary Commission. In his budget speech, Mahat said, "Public administration will be made accountable and successful through the implementation of a system that works for results.”


In the budget speech, Mahat also said that the government will do the needful to materialize the concept of paperless work.

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