The Ministry of Finance (MoF) has stated that the government is focusing on implementing austerity measures aimed at reducing the size of recurrent expenditure.
Speaking at a meeting of the Parliamentary Finance Committee on Thursday, Finance Secretary Ghanshyam Upadhyaya said the government is working to reduce the number of ministries, dissolve unnecessary offices and structures, and limit unnecessary appointments within government agencies.
Upadhyaya also stated that the government is trying to end the practice of approving unnecessary projects merely for popularity purposes. “The government has been making efforts to stop the trend of including undesired projects just to gain popularity,” he said.
Emphasizing the importance of strengthening the role of the private sector in the economy, the Finance Secretary noted that sustainable productivity growth cannot be achieved solely through increased public spending. He added that the upcoming budget would define the government’s role mainly as a “catalyst” to facilitate private sector investment.
The government has repeatedly stated that the upcoming fiscal budget will not allocate funds to projects that are not listed in the National Project Bank. Previously, projects that were not formally registered in the government system were also included in annual budgets.
According to the National Planning Commission, around 5,300 development projects are currently registered in the National Project Bank, including 293 new projects proposed for the next fiscal year. Under existing government rules, proposed projects must be entered into the system by the third week of May in order to receive priority in annual budget allocation.
