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Govt set to lose spending authority as House fail to pass Replacement Bill on budget ordinance

KATHMANDU: The government is likely to lose its spending authority (under any headings) for at least a week after the meeting of the House of Representatives today was adjourned till September 20 without passing the Replacement Bill on budget ordinance.

In case the bill to replace the ordinance is not passed within 60 days of the commencement of the parliamentary session, the ordinance will be automatically deactivated. Tuesday marks the 60th day since the parliament session began.

As the House meeting has been postponed until Monday, the government will not be able to spend budget under any headings until then. The government will not have any authority to make spending until next Monday. “It is the first time Nepal faced such financial deadlock. The government cannot make spending by any other optional means for next one week if the Appropriation Bill is not passed by tomorrow,” said an official at the Ministry of Finance.

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