The government formed in the wake of the Gen-Z movement has decided to scrap projects inserted into the budget by the previous administration under political pressure.
According to the Ministry of Finance, the decision applies to projects valued at less than Rs 30 million as well as larger schemes placed under the “bank of projects” category in the Fiscal Year 2082/83 BS budget.
Finance Minister Rameshore Khanal said the measure will help reduce expenditures by about Rs 120 billion, with the freed-up funds primarily used to clear overdue payments owed to construction contractors.
“Contractors who have already completed work but are awaiting payments from the concerned ministries will now be settled,” Khanal said. “Any remaining funds will be redirected toward other priority projects.”
The move is expected to relieve growing financial stress in the construction sector while signaling a shift toward tighter fiscal discipline under the new administration.
