Government to Slash Operating Costs, Eyes Rs 20 Billion in Savings

Kathmandu — Cost reduction and efficiency enhancement will be another dimension of institutional reform, Finance Minister Dr. Swarnim Wagle announced through the budget.

To achieve this, the government will control recurrent expenditure while maintaining unprecedented frugality and efficiency in allocation. Wagle said office operating costs have been significantly reduced.

He has scrapped the allocation for training expenses outside training centres, as well as for equipment such as cameras and televisions. The practice of setting up various funds to provide perks will also be discontinued.

The Finance Minister has also removed the discounts given to officials and staff of public institutions on the purchase of goods and services produced by those same institutions.

In addition, the funds allocated to agencies that have been merged or scrapped have been frozen until the work related to adjusting their staff positions and managing their liabilities is completed.

According to a preliminary estimate, these measures are expected to save around Rs 20 billion.