Government Cuts Budget: Gives Priority to Nearly Completed Projects Instead of New Plans

The government is preparing to reduce the budget size for the upcoming fiscal year, with major cuts planned for ministries linked to development and production sectors. Physical Infrastructure Ministry’s budget is expected to fall from Rs 1.51 arba to around Rs 1.23 arba, while the Energy Ministry’s allocation has nearly been cut in half from Rs 83 arba to around Rs 43 arba. Agriculture, drinking water, urban development, tourism and education sectors are also facing reductions. At the same time, ministries linked to administration and security including Finance, Home, Defence and Foreign Affairs are set to receive increased budgets.

Finance Minister Dr. Swarnim Wagle said the government will now stop spreading small budgets across many new projects and instead focus on completing projects already in their final stages. The government says weak spending performance is one of the main reasons behind the cuts, pointing out that some ministries spent only around 23% of their capital budget by Baisakh. Wagle also stressed that Nepal’s rising public debt must now be directed toward productive sectors, job creation and infrastructure instead of unproductive spending.