Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Finance Minister Rameshwar Prasad Khanal has clarified that the government has suspended only poorly prepared and economically non-productive small-scale development projects, amid growing concerns over the halt of development works.
Responding to a query from National Assembly member Bhuvan Bahadur Sunuwar of the Nepal Communist Party during today’s session of the National Assembly, Khanal said the decision was driven by budgetary pressure and the need to restructure spending priorities.
He informed the House that fiscal space has narrowed due to multiple financial obligations, including:
Reconstruction of structures damaged during recent unrest
Restoration of disrupted public services
Resource management for conducting National Assembly and House of Representatives elections
Payment liabilities arising from underfunding of ongoing and priority projects
Economic recovery initiatives
Relief and support for injured individuals and families of martyrs
“These pressures have necessitated strict prioritization of capital expenditure,” the minister said.
Projects in Advanced Stages Being Released
Khanal emphasized that projects already in advanced stages — including those with completed designs, cost estimates, and tender processes, or those under implementation through consumer committees — are being verified by line ministries and gradually released for funding.
He stated that many such projects have already had their budgets unfrozen, rejecting claims of a blanket halt on development works.
The suspension decision was based on a Cabinet decision dated Asar 5, 2082 (BS), which targeted only projects that:
Lack proper preparation
Have not entered procurement stages
Do not generate immediate economic returns
Dalit Rights Bill Fast-Tracked
Separately, the Finance Minister said the government has accelerated drafting of a Dalit Rights, Welfare, and Development Bill in line with Article 40 of the Constitution, which guarantees rights of the Dalit community.
The bill received in-principle approval from the Cabinet on Poush 28, 2082 (BS) and is targeted for presentation in the upcoming session of the Federal Parliament.
Khanal said formal correspondence has been initiated with the Nepal Law Commission following preliminary consultations. The government aims to complete drafting within 21 days, conduct public consultations for about one week, and submit the bill to the Cabinet within a month.
Calling it a highly significant piece of legislation, the minister said the government is committed to concluding the process within its current tenure.
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