MoFAGA issues circular to all district and local levels to reduce current expenditure by 20 percent

Published On: February 4, 2023 02:30 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Feb 4: The Ministry of Federal Affairs and General Administration(MoFAGA) has issued a circular to all district coordination committees and local levels to reduce current expenditure by 20 percent.

The Ministry of Finance on Tuesday decided to cut spending in federal ministries and subordinate agencies. The Ministry of Finance had decided to ask the provincial and local levels to cut costs. After the reduction of the expenses of the current title in the federal agencies, the Ministry of Federal Affairs and General Administration has asked the local level to reduce the expenses as well. The Ministry sent a letter to all District Coordination Committees and local levels on Friday and instructed to cut 20 percent expenditure under current headings.

All ministries and agencies of the federal government will have to reduce the remaining budget by 20 percent and amend the entry in the Line Ministry Budget Information System (LMBIS), which has been spent in the allocated budget under the various expenses headings of the federal government. Also, the amount of initial allocation and approved program/activities and the adjustment proposal of the said amount shall be prepared and submitted to the Ministry of Finance by the relevant ministry.

Last Tuesday, the Ministry of Finance decided to cut current expenditure by 20 percent saying that the government's financial balance had deteriorated. According to the ministry, the expenditure of about 24 and a half billion rupees has been cut in the topics of fuel, newspaper expenses, allowances, office operation etc. According to the Ministry of Finance, the decision to cut expenses was made due to the fact that the revenue was not collected as per the target in the current financial year, the budgetary assistance was not received on time, and the financial obligations for the employee's salary and social security programs were increasing.

The Ministry of Finance has reduced the expenses of the approved budget of all the ministries/agencies of the federal government on fuel, maintenance, furniture and office supplies, newspapers, printing and publication of information, services and consulting.

Similarly, 20 percent in the budget for information system and software operation expenses, visits, other allowances, program expenses, monitoring and evaluation expenses, staff training, seminars, seminars and workshops, miscellaneous expenses, machinery and tools, furniture and fixtures, and structural improvement of constructed buildings. Expenses have been cut. The Ministry of Federal Affairs has issued a circular to reduce the expenses under these headings at the local level as well.

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