Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: In line with its policy of reducing unproductive expenditure and enforcing austerity, the Government of Nepal has decided to restrict benefits and facilities extended to former political and administrative officials strictly to those permitted by law.
According to a Cabinet decision dated Ashoj 5, 2082 BS (September 21, 2025), retired officials will only be entitled to facilities mentioned in existing laws and approved standards. Any additional benefits, including vehicles, goods, personal assistants, or security personnel that have been provided beyond legal provisions, must be immediately withdrawn.
The Ministry of Finance, through a formal correspondence on Ashoj 10, 2082 BS (September 26, 2025), has directed the Ministry of Home Affairs and the Ministry of Defence to enforce the Cabinet’s decision without delay. The circular requires both ministries to ensure that any extra privileges are revoked and all unauthorized resources returned promptly.
Officials stated that the move is part of the government’s broader plan to control unnecessary state expenditure, promote financial discipline, and respond to growing public demand for accountability in the use of taxpayer funds.
The decision also aligns with the interim government’s broader agenda of transparency, austerity, and responsible governance at a time when the state faces fiscal pressures from political unrest and reconstruction needs.
By curbing discretionary benefits extended to former high-ranking officials, the government seeks to set a precedent of cost-cutting, efficiency, and legal compliance, while redirecting resources toward urgent national priorities.
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