Govt orders 3-shift work in development projects to accelerate execution

KATHMANDU: In a bold push to expedite development initiatives, the Ministry of Finance has issued a new circular mandating all government development projects operate in three daily shifts. The directive comes into immediate effect with the start of the fiscal year 2082/83 (2025/26), and is part of the ministry’s broader guidance for budget implementation.

The circular instructs project offices to ensure faster delivery of infrastructure and development works by operating in three shifts daily—morning, afternoon, and night. “To ensure timely completion of projects and enhance execution efficiency, project chiefs must be selected on the basis of internal competition, and should not be transferred during the project period unless performance falls below the minimum threshold,” the circular states.

This move marks a step-up from last year’s guideline, which encouraged two shifts. However, the lack of implementation led to significant delays and several projects being left incomplete or stalled.

Key Highlights of the Finance Ministry’s FY 2082/83 Circular:

Deadline for Procedures and Personnel Plan:

The ministry has directed all agencies to finalize necessary working procedures by the end of Shrawan (mid-August) if not already in place for budgeted programs. Temporary staffing plans must be approved by the Council of Ministers with Finance Ministry consent during the same period.

Public Procurement in Nepali:

Procurement documents must now be translated and issued in Nepali. The ministry has instructed agencies to localize model bidding documents and ensure they are legally binding and publicly accessible.

Accountability Measures Strengthened:

Project chiefs and contractors will be held personally accountable for delays or cost overruns due to indecision, flawed design, or poor specification. Faulty technical documents that cause excessive liabilities will be subject to legal consequences.

Strict Budget Implementation:

Only approved and budgeted projects and programs may be implemented. No additional funds will be released or reallocated (rakmantars) to unapproved items. Notably, even national pride projects cannot have their funds transferred to other uses.

No Arbitrary Staff Expansion:

Government agencies are barred from increasing staff numbers without prior approval from the Finance Ministry. Moreover, foreign goods must be avoided in procurement when locally produced alternatives are available.

Vehicles and Logistics:

Any purchase of new government vehicles requires prior authorization from the Finance Ministry. Additionally, old vehicles and items must be auctioned off within six months.

Venue Guidelines for Events:

Government-hosted seminars, workshops, and conferences must be held within official premises, not external venues, to minimize costs.

Capital Expenditure Monitoring:

Budget allocations must be spent by Falgun (mid-March). If spending is unlikely by then, funds must be surrendered by Chaitra 15 (late March), even if the budget appears duplicated.

Reforms in Financial Equalization Grant:

The Finance Ministry has also clarified the revised schedule and conditionality of financial equalization grants:

Four installments will be disbursed: Bhadra 2, Kartik 2, Magh 2, and Baishakh 2.

The third and fourth installments will be based on revenue collection performance relative to targets set by Poush and Chaitra end, respectively.

Provincial and local governments must submit detailed utilization reports by the end of Kartik, Magh, Baishakh, and Shrawan. Delayed reporting will result in withheld grants.

Quality Enforcement and Environmental Compliance:

For projects valued above Rs 100 million, technical quality assessments must be performed by the National Vigilance Centre. The circular also emphasizes easing environmental impact assessments and payment procedures to prevent bottlenecks.

The ministry’s directive signals a stronger push for project discipline, accountability, and fiscal prudence. Whether these ambitious goals will be met depends largely on bureaucratic willpower and real-time monitoring.