Government unable to provide salary allowances and pensions to the employees

Government struggling to afford food for prisoners

The government is now in a situation where it is unable to provide regular salaries, allowances, and pensions to employees.

Salaries, allowances and pensions of thousands of employees have been stopped in the current financial year. Some of the existing employees have not received the salary and allowances since February and the retired employees have not received the amount due to pension. Due to a lack of finances, the state has not been able to provide even the funds for regular food expenses to the prisoners.

At present, according to government statistics, the number of teachers receiving pensions is 51,308. Among them, more than 30,000 teachers have not received their pension for the month of March. Bishnu Prasad Kharel, Head of the Pension Management Office, has informed us that the teachers’ pensions have been stopped as the Ministry of Finance has not disbursed the funds.

Similarly, the spokesperson of Nepal Police, Dipendra GC, has informed that there is insufficient fund to pay salaries to 131 units out of the total 486 units of Nepal Police.

Not only that, the government has not been able to provide expenses even for regular foods to about 27,000 prisoners across the country. According to Chakrapani Pandey, Director General of the Prison Management Department, the government has not provided the required funds for the food expenses to the inmates in the country.

According to the spokesperson of the Financial Comptroller General’s Office, Shambhu Prasad Marasini, a total of 7 trillion 2 billion 120 million revenue has been collected by Wednesday. While during this period 7 trillion 21 billion 20 million rupees have been spent on salary and allowances of employees and other administrative expenses. According to this calculation, nearly 19 billion rupees more than the income of the state has been spent only on salary allowances and pensions of the employees.

It seems that the government, which has set a target of collecting revenue of 14 trillion 58 billion 600 million in the current financial year, has collected only about 50 percent of the total estimated amount even after 9 months of the current financial year. The country has reached a situation where the revenue collected by the government cannot even cover the salaries and administrative expenses of the employees.

ADB’s investment in Nepal by 2022 is 4 trillion 20 billion NRs

April 22- Kathmandu – The Asian Development Bank (ADB) has announced that by 2022, about 4 trillion 20 billion NRS has been invested in Nepal’s energy, transportation, agriculture, drinking water, urban infrastructure, service sector, rural development, and natural resources, health, and education by ADB.

ADB Director General Kenichi Yokoyama has said that the Asian Development Bank has been investing a large amount in various projects in Nepal, but the problems of the Asian Development Bank’s project implementation should be actively addressed and special attention should be paid to that matter.

In a two-day discussion organized to provide information on the field and performance of projects in Nepal (Country Portfolio), Minister of Finance Prakash Sharan Mahat said that the government is committed to improving the capital expenditure to address the challenges of Asian Development Bank project implementation and delivery and to address the people’s desire for development.Projects such as Urban Water Supply and Sanitation Project, Bagmati River Basin Improvement, Rural Enterprise Finance Project and Power Transmission and Distribution Efficiency Enhancement Project were awarded in the program which were supported by ADB.

Nepal Rastra Bank selling 20 billion development bonds

April 20- Kathmandu – Nepal Rastra Bank has prepared to sell development bonds worth 20 billion rupees for the purpose of raising internal debt.

According to the Nepal Rastra Bank, the maturity period of the bond named ‘Development Loan 084 ‘T’ will be four years and the interest rate of the bond will be determined from bidding.

As mentioned in the notice of the Nepal Rastra Bank, the bond can be bid on 20th April until 3:00 in the afternoon, then the Bank will issue the bonds on Friday. The bond can be purchased by banks and financial institutions, insurance companies, organized organizations, and Nepali citizens.

The government, which has set a target of raising 2 trillion 56 billion rupees in domestic debt in the current financial year, has already raised 88 billion rupees in the third quarter of the current financial year .

Nepal’s banking sector is safe: Small shocks won’t affect it: Governor

Nepal Rastra Bank Governor Maha Prasad Adhikari has said that the condition of Nepal’s banks is safe and a small shock will not affect it.

Announcing the financial data for 8 months of the current fiscal year 2079/80, the governor said that the foreign exchange reserve is in a comfortable state and inflation is in a declining state.

He said that even though the bank’s interest rate is slightly higher, the base rate has been decreasing since February. He said that there is no need to despair as Nepal’s economy is improving, and that capital adequacy is 13 percent instead of 11 percent and non-performing loans are 2.63 percent.

Import restrictions extended until November

The cabinet meeting held today has decided to maintain the ban on the import of luxury goods such as vehicles and mobiles until November.

The decision made by the Council of Ministers in a meeting held today has decided to extend the ban as it ends today. As Nepal’s foreign exchange reserves declined, 10 items were banned from Baisakh 2079 BS., defining them as luxury goods. But out of those 10 items, only 4 items are currently banned. On Bhadra 14, 2079 BS., private vehicles except for ambulances, mobile phones above $300, motorcycles above 150 cc and alcohol were banned, and the meeting of the council of ministers held today has decided to extend it till November.

Earlier, the import of Kurkure chips and similar products, prepared liquor, cigarettes and tobacco products, diamonds, mobile phones, televisions above 32 inches, jeeps, cars,vans andmotorcycles above 250 cc, toys and palying cards was banned.

Government banned the import of 10 items till mid-July

The government has banned the import of 10 items after the foreign reserves declined rapidly during the economic crisis . The Ministry of Industry, Commerce and Supplies has published a notice, banning the import of 10 items including kurkure chips , alcohol, TV, mobile and motorcycles. The import of luxury consumer goods has been banned till mid-July.

The banned items includes kurkure,lays and similar other products, all types of ready-made liquor, cigarettes and tobacco products (except raw materials).

The import of diamonds (excluding industrial raw materials), mobile sets, color televisions (above 32 inches), jeeps, cars and vans, motorcycles with a capacity of more than 250 cc, all kinds of toys and playing cards are banned.

According to the notice, this provision does not apply in case of import through booking medium has been made before before 26th April, 2022. Similarly, diplomatic missions in Nepal can import these items for their own purposes.

Government’s decision to cut fuel budget by 20 percent for government facilities

The government has decided to cut fuel for government facilities by 20 percent due to declining foreign exchange reserves.

According to the Ministry of Finance, various ministries, agencies and public organizations affiliated to the government have to cut 20 percent of the remaining budget on fuel. It has been mentioned that the decision of the government will not be implemented in the case of essential vehicles, vehicles used in local elections and vehicles used for peace and security.
It is also said that the decision taken by the cabinet meeting on April 13 will be implemented till July 16.