Finance Ministry Clamps Down on Foreign Trips, Vehicle Purchases, and Bureaucratic Waste

Jul 21, 2026 12:38 PM Merolagani



The Ministry of Finance has unveiled a strict set of budget implementation guidelines for the current fiscal year, aimed at curbing fiscal extravagance and reigning in administrative expenses.

Under the new directives, the Ministry is establishing direct gatekeeping control over high-expenditure, unproductive sectors—specifically targeted at vehicle acquisitions, foreign official travel, and external consultancy services.

Key Measures Introduced

  • Mandatory Prior Approval for Vehicles & Travel (Points 30 & 31): Government agencies can no longer purchase new four-wheelers or send employees abroad simply because funds were allocated. Every request now requires explicit, prior approval from the Finance Ministry following a thorough review of its necessity.

  • Ban on External Consultants for In-House Tasks (Point 28): Hiring outside consultants is now prohibited for tasks that regular administrative structures can handle. In particular, a complete ban has been placed on using private consultants to draft acts, regulations, policies, or procedures.

  • Relocation Away from Commercial Real Estate (Point 32): Government offices are forbidden from renting private spaces if public buildings are available. When renting is unavoidable, agencies must choose cost-effective properties outside major commercial centers and main thoroughfares.

  • Strict Office Austerity Measures (Point 29): The Ministry is enforcing a "ration-style" approach to daily operating costs. Offices must practice maximum austerity regarding water, electricity, fuel, communications, building maintenance, and meeting allowances.

  • No Unfunded Financial Liabilities (Point 15): Agencies are strictly prohibited from making any decisions that create additional financial commitments without prior consent from the Ministry of Finance.

The Push for Fiscal Responsibility

This hardline strategy comes on the heels of a troubling financial performance in the previous fiscal year, where the government failed to hit revenue targets while capital (development) expenditure plummeted to just 47%. Conversely, administrative overhead remained near 100%.

Implementation Challenges Ahead

While the framework offers a strong blueprint for fiscal discipline, enforcement remains the primary hurdle. Observers note that similar past directives were often bypassed due to political pressure from powerful ministers and top bureaucrats.

However, if these regulations are strictly enforced without exceptions, the policy is expected to save billions of rupees from public waste, redirecting crucial funds back into capital development.




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