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.

Janardan Sharma again appointed as Finance Minister

CPN Maoist Center leader Janardan Sharma has been re-appointed as Finance Minister.

Sharma, who resigned after becoming controversial in the budget issue of the financial year 2079/80, will take charge of the finance minister again after being cleared by the parliamentary investigation special committee.

It is said that on the recommendation of Prime Minister Sher Bahadur Deuba, President Bidya Devi Bhandari appointed Sharma as a minister to take charge of the Ministry of Finance again. It is also said that Sharma will take the oath of office and secrecy today.

Preparations to extend the deadline for Parliamentary Inquiry Committee

The process of extending the deadline of the parliamentary special inquiry committee has been initiated which is investigating the alleged involvement of unauthorized persons in the preparation of the budget

As the parliamentary special inquiry committee has not been able to complete the work within the specified period, Speaker Agni Prasad Sapkota is likely to provide more time to the committee in today’s Parliament meeting. Earlier, 10 days time was provided for the investigation.
Surendra Aryal, secretary of the committee have requested that the required time be extended.He also said that the CCTV footage has been sent to the police to recover it and it is not yet decided when the report will come.

During the investigation, the committee questioned the outgoing Finance Minister Sharma for about 3 hours today. He has denied the allegation that other than the concerned officials of the Ministry of Finance were involved in the budget preparation.

Demonstration in the streets demanding the resignation of the Finance Minister

Industrialists and workers of Morang have staged a protest demanding the resignation of Finance Minister Janardan Sharma.

Industry organizations and workers including Morang Trade Union, Industry Association, Confederation of Nepalese Industries, Nepal Trade Union Congress, All Nepal Trade Union Federation have protested against Finance Minister Sharma accusing him for making the policy in favor of those who gave him the commission during the budget allocation.

Stating that due to the incompitence of the Finance Minister, many industries have come to a shutdown position and millions of workers will become unemployed, they have demanded to correct the tax range created by the new budget system.

According to the protesters, the agitation will continue until the Finance Minister resigns and the Inland Revenue Office and Customs Office will be cordoned off on Friday.

Parliament sitting obstructed demanding for investigation committee on Finance Minister Sharma

Stating that the explanation of Finance Minister Janardan Sharma regarding the involvement of unauthorized persons in the Ministry of Finance during the preparation of the budget was not satisfactory, the main opposition party UML has obstructed today’s meeting of the House of Representatives demanding formation of a parliamentary inquiry committee.

Finance Minister Sharma said that the allegation are false and fictitious. He also clarified that the budget was formulated by a committee headed by the Secretary of the Ministry of Finance and the Secretary of Revenue and he also acted in accordance with the responsibilities given to him.

Meanwhile, UML chief whip Bishal Bhattarai said that CPN UML would not allow the parliament to function until a parliamentary committee is formed to investigate the issue.

Governor Adhikari returned to work

Suspended Governor of Nepal Rastra Bank Maha Prasad Adhikari has returned to work with the short-term interim order of the Supreme Court.

Hearing a writ petition filed by the governor against the government alleging that he was illegally suspended on personal grounds, the apex court ordered not to implement the decision of the Council of Ministers and the Ministry of Finance immediately.

The Supreme Court has directed the Prime Minister’s Office and the Office of the Council of Ministers to submit a written reply through the Office of the Attorney General within 15 days.

Preliminary hearing to be held on the writ petition filed by suspended Governor Adhikari

A preliminary hearing will be held in the Supreme Court today on the writ petition filed by suspended Governor Maha Prasad Adhikari seeking reversal of the action taken against him.

Claiming that he was suspended due to biased retaliation, suspended Governor Maha Prasad Adhikari has demanded an order to be issued to lift the suspension on him.

He has also questioned the impartiality of those in the committee formed to investigate him. The suspended governor has challenged to confirm the allegations, saying that government could not provide evidence even though he was accused of not cooperating with the government’s policies and programs.

In his writ petition, he said that Finance Minister Sharma had tried to interfere in some files related to money laundering. That is why he has been suspended.

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.

Governor suspended for not cooperating with finance minister: PM Deuba

Prime Minister Sher Bahadur Deuba has said that the governor has been suspended for not cooperating with the finance minister.
Following the suspension of the governor, the government on Friday had formed a three-member inquiry committee headed by a former Supreme Court judge.
At a meeting of the ruling party held today amid widespread criticism of the action against the governor, General Secretary of the Nepali Congress Gagan Kumar Thapa and CPN-Maoist central leader Barshaman Pun had raised questions about the economic crisis and the action taken against the governor.

During the meeting, Prime Minister Deuba said that action was taken against him for not cooperating with the Finance Minister.

It is said that action was taken against the governor on the basis of the complaint of the finance minister that he did not cooperate in all the works.

Government intervened to destroy the entire country’s economic system: Bishnu Poudel

Stating that Finance Minister Janardan Sharma has interfered in the autonomy of Nepal Rastra Bank, CPN-UML Vice-Chairman Bishnu Poudel said that such a decision of the government would further collapse the country’s economy.

Speaking at a press conference organized by the UML on the country’s economy today, Poudel said, “The government has intervened to disrupt the country’s economic system by suspending the governor at a time when the country’s economic situation is weak and the economy needs to improve.”

He also said that if the government does not intervene positively, it will push the country into an economic crisis similar to that of Sri Lanka. Speaking at a press conference, he said that the speech of the Prime Minister or the Minister alone could not stop the current economic crisis.