The office had sought an additional Rs 2 million in order to distribute financial assistance to those recommended by the prime minister.[break]
Officials at the Finance Section at OPMCM said they were surprised to see their proposal snubbed by MoF. MoF rejected the proposal citing budgetary limitations. “As the annual budget has not yet been passed by parliament, we strictly urge all state agencies not to incur extra expanses,” states a MoF letter sent to OPMCM.
The letter comes amidst complaints from various quarters that the prime minister was involved in improperly distributing money as financial assistance. Government agencies can spend only one-third of the total budget unveiled for fiscal year 2009/10 until parliament duly approves the budget.
MoF said that the proposal was rejected on two grounds. First, it cannot release any additional money due to budgetary limitations as the national budget is yet to be passed by the House. And secondly, the amount distributed under the financial assistance head already exceeded the allocation for the purpose.
This is the third time since it ran out of money that the Finance Section at OPMCM has sought Rs. 2 million for financial assistance. The source said that allocation of Rs. 4 million was spent within just two months, probably setting a new record.
Records at the section show that Rs 4 million has been spent as financial assistance, in two phases. MoF had allocated Rs 2.5 Million for the first phase under the financial assistance head. That amount was spent within one and half months after formation of the government led by Madhav Kumar Nepal.
The section then sought Rs 1.5 million as additional budget for financial assistance. MoF provided the second installment as asked by OPMCM. That amount was spent within one month after release.
The section had then sought the third installment, as per a long list prepared on the recommendation of the prime minister. MoF, however, refused to provide the Rs. 2 million additional budget despite repeated requests by top officials at OPMCM. “We are tired of asking MoF for such budgets,” said senior officials at OPMCM.
The Finance Section has informed the prime minister and other senior officials about progress on release of the third round of financial assistance and the reaction of MoF.
Salaries Stalled:
The Finance Section at OPMCM has finally stalled the salaries of the prime minister and all other ministers after it could not secure any policy-level decision by MoF. The total salary money amounting to Rs 6 million was supposed to be released at the end of this month. Government offices will remain closed effective from Saturday for the Tihar festival.
As per MoF instructions the section decided not to provide salaries for the prime minister and other ministers. MoF had recently instructed the section not to issue money more than one-third of the total budget. “The office is closed from today [Friday] and we didn´t release the salaries for the prime minister and ministers,” said an official at the section.
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