Government to Reallocate Funds and Arrange Additional Budget to Settle Last Fiscal Year’s Liabilities in Development Projects

The government has decided to reallocate funds and arrange additional budget allocations to clear payment liabilities from the previous fiscal year for 162 under-construction bridges on national highways and 303 bridges on local roads. This measure falls under the Ministry of Urban Development’s oversight to settle outstanding payments related to projects completed by fiscal year 2081/82 or earlier by incorporating extra activities into the 2082/83 budget and program.

In a cabinet meeting held on 2 Baishakh, the government resolved to ensure mandatory payment of liabilities for the 162 bridges on national highways currently under construction, as well as for 303 bridges contracted by fiscal year 2079/80 for local road construction, by reallocating funds and allocating additional budget. Contractors have persistently pressured the government for payment of liabilities accumulated in previous years.

Since outstanding payments remain for projects completed under the Ministry of Urban Development by 2081/82 or earlier, the government has also decided to add new activities in the ongoing 2082/83 budget and program to clear these liabilities through reallocation. Projects initiated in prior fiscal years and still under construction but not yet included in the ministry-level budget information system for 2082/83 will be incorporated into the current fiscal budget and paid from reallocated funds.

For multi-year projects operated under contract agreements made without source consent from the Ministry of Finance, the government will manage budget shortfalls for the current fiscal year via reallocation. Government spokesperson Sasmita Pokharel has publicly shared these cabinet decisions.