Discontent Among Ministers and Staff as Retail Projects in Madhesh Province Are Halted
June 25, Janakpurdham – The Ministry of Education and Culture in Madhesh Province announced a call for proposals on June 2 to implement small-scale programs included in the current fiscal year’s red book, such as training sessions, workshops, and street plays. Through a 15-day notice, the ministry had initiated the implementation process for 11 projects, consisting of eight projects worth NPR 1 million each, two at NPR 900,000 each, and one at NPR 800,000. However, these projects were stopped before implementation. The primary reason for the halt is a decision and circular issued by the Ministry of Finance.
On June 9 and June 18, the Ministry of Finance sent letters instructing ministries, the Secretariat, commissions, institutions, and other agencies not to proceed with projects costing up to NPR 1 million. Additionally, payments are to be made only for projects with agreements signed by June 9.
The Ministry of Education and Culture has expressed dissatisfaction with this decision. Minister Manojkumar Singh emphasized that projects approved by the Provincial Assembly and included in the red book must be allowed to proceed. “Projects passed by the assembly and included in the red book should be allowed to move forward; otherwise, this will directly affect the public. If the expenses are below NPR 1 million, there is no justification for budget constraints,” Minister Singh stated. Other ministries are also unhappy with the Ministry of Finance’s circular, which has impacted their routine operations.
Only in the last week of the Nepali month Baishakh was the budget for ministries and affiliated bodies’ projects unlocked via the budget expenditure system (PLIMBS). Prior to that, many projects could not be implemented due to budget freezes. At that time, Mahesh Prasad Yadav of the Janmat Party held the position of Finance Minister. The provincial government had proposed a budget exceeding its financial capacity for the current fiscal year, placing the Ministry of Finance under financial risk. Upon indications of a deficit exceeding NPR 1.2 billion during budget implementation, the Ministry of Finance had already instructed ministries to cut 20 percent of their budgets across all headings and reduce the budget for projects costing up to NPR 1 million.
The recently reissued circular not only halts projects up to NPR 1 million but also orders budget cuts across various categories. Payments will only be made for projects with agreements signed by June 9. It also mandates a 30 percent reduction in the budget allocated for the purchase of spices and office supplies. Furthermore, budget remaining for fuel, vehicle and machinery maintenance, preservation and repair of public assets, printing and publication, production materials and services, program operations, training, consulting services, staff training, advertising, and travel expenses will be subject to a 50 percent freeze.
