KATHMANDU, Jan 9: The government has released a budget of Rs 31.69 billion for 1,142 infrastructure-related projects, lifting an earlier funding freeze imposed on small-scale development schemes.
According to the Ministry of Finance (MoF), the released budget covers priority sectors including drinking water, education, health, and other essential infrastructure projects. The decision was made based on the need, relevance and preparedness of the projects including those already completed and those nearing completion.
A finance ministry official said the funds were released after reviewing projects with clear justification and long-term impact.
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After assuming office, Finance Minister Rameshwar Khanal had announced a freeze on fragmented and unprepared infrastructure projects, directing several development ministries to hold budgets worth Rs 90 billion. The freeze mainly affected small projects valued at up to Rs 30 million.
The ministries affected included the Ministry of Physical Infrastructure and Transport, Ministry of Urban Development, Ministry of Energy, Water Resources and Irrigation, Ministry of Drinking Water, Ministry of Agriculture and Livestock Development and the Ministry of Industry, Commerce and Supplies.
The finance ministry has now begun gradually releasing funds for projects deemed necessary and capable of delivering long-term benefits after detailed assessment.
Previously, budgets worth Rs 89.54 billion allocated for small-scale projects under the Ministry of Physical Infrastructure and Transport, Ministry of Urban Development, Ministry of Industry, Commerce and Supplies, and the Ministry of Agriculture and Livestock Development were put on hold. Of these, the Ministry of Urban Development alone had over 2,100 projects affected.
Similarly, more than 450 projects worth nearly Rs 13 billion under the Ministry of Physical Infrastructure and Transport were frozen. Projects worth Rs 1.04 billion under the Ministry of Industry, Commerce and Supplies and Rs 500 million under the Ministry of Agriculture and Livestock Development were also held back.
The government says the phased release of funds will continue following further evaluation of project relevance and preparedness.
