Contracted projects won’t face budget cuts: Khanal

KATHMANDU: Minister for Finance Rameshwor Prasad Khanal has clarified that the budget for projects that have already been contracted out will not be reduced.

Khanal’s comment came after members raised concerns about development projects facing budget cuts at the meeting of the Development, Economic Affairs and Good Governance Committee of the National Assembly on Wednesday

The finance minister also said that liquidity increased in the banking system after lending to rural and priority sectors was affected. “The government is looking into the issue,” Khanal said, adding that loans directed toward the deprived and priority sectors will no longer be halted. “This will help reduce excess liquidity.”

Khanal added that the federal government utilized unspent funds that had remained idle due to the inability of the local and provincial governments to spend their allocated budgets. “This has provided some relief given the government’s limited resources,” he added.

He clarified that services and facilities for government officials were reduced to curb the misuse of public funds. “The government is ready to hold discussions on the implications of these fund cuts,” he added.