KATHMANDU: Minister for Finance Dr Prakash Sharan Mahat announced the intention to scrap all types of allowances in the budget for the fiscal year 2023/24. The decision receives a positive response from the media and social media as a step towards frugality in general expenses.
“While acknowledging the resource constraints, I propose the elimination of performance allowances, overtime allowances, and all other types of allowances in the coming fiscal year,” Mahat said, presenting the budget for the fiscal year 2023/24 in parliament on Monday.
However, contrary to Mahat’s claim, the allowances have not been entirely scrapped as indicated. The budget document reveals that the government has allocated Rs 12.91 billion for this purpose. The allocation includes various types of allowances such as local allowances, inflation allowances, field visit allowances, meeting allowances, performance allowances, and rewards.
Specifically, the government has allocated Rs 1.93 billion for local allowance, Rs 6.95 billion for inflation allowance, Rs 12.7 million for site visit allowance, Rs 225.7 million for meeting allowance, and Rs 392 million for performance allowance and rewards. Additionally, Rs 917.9 million has been allocated for foreign visit allowance, Rs 1.68 billion for other allowances, and Rs 558 million for allowances and facilities of different office-bearers.
Furthermore, the budget has set aside Rs 5.12 billion for uniform allowance, Rs 15.80 billion for food, and Rs 10.31 billion for medical treatment. All of these allowances are intended for government employees.
Although the government has said that it won’t acquire motor vehicles in the upcoming fiscal year, a budget of Rs 5.77 billion has been allocated for the maintenance and upkeep of motor vehicles. Likewise, an additional Rs 4.19 billion has been earmarked for logistics and services of government offices, while a substantial Rs 11.72 billion has been set aside for consultancy services.
Allocations at a three-year high
The budget allocation for the next fiscal year exceeds that of the current fiscal year. The total allocation for allowances in 2023/24 is Rs 12.11 billion, compared to Rs 11.86 billion for the current fiscal year and Rs 9.20 billion for 2021/22.
