The government has released Rs 31.69 billion for 1,142 infrastructure-related projects, lifting the earlier freeze on funding for small-scale development schemes.
According to the Ministry of Finance (MoF), the funds cover priority sectors such as drinking water, education, health, and other essential infrastructure. The decision was based on project necessity, relevance, and readiness, including those already completed or nearing completion.
A finance ministry official said the budget was released after reviewing projects with clear justification and potential long-term impact.
After taking office, Finance Minister Rameshwar Khanal had frozen budgets worth Rs 90 billion earmarked for fragmented and unprepared infrastructure projects, mainly affecting schemes valued at up to Rs 30 million. The freeze impacted projects under the ministries of Physical Infrastructure and Transport; Urban Development; Energy, Water Resources and Irrigation; Drinking Water; Agriculture and Livestock Development; and Industry, Commerce and Supplies.
The MoF has now begun gradually releasing funds for projects considered necessary and capable of delivering sustainable benefits following detailed assessments.
Previously, budgets totaling Rs 89.54 billion for small-scale projects under several ministries were put on hold. The Ministry of Urban Development alone had more than 2,100 projects affected, while over 450 projects worth nearly Rs 13 billion under the Ministry of Physical Infrastructure and Transport were frozen. Projects worth Rs 1.04 billion under the Ministry of Industry, Commerce and Supplies, and Rs 500 million under the Ministry of Agriculture and Livestock Development had also been suspended.
The government has stated that phased budget releases will continue as further evaluations of project relevance and preparedness are completed.
