KATHMANDU: Finance Minister Rameshwor Khanal has said the government will not need to rely on donors or neighbors to fund the federal parliamentary elections scheduled for March 5.
Speaking at an interaction with the newly elected executive committee of the Society of Economic Journalists-Nepal, Minister Khanal revealed that more than 1,300 projects had been identified that were never entered into the project bank despite having budget allocations. Around Rs 110 billion allocated for these projects will now be freed up, he said.
Additionally, about Rs 12 billion set aside under headings such as seminars and meetings in the current budget can also be withdrawn. The government will reallocate funds from projects that have not commenced, the minister clarified.
“The focus is on pulling back funds from projects where allocations remain unspent,” he said, adding that while elections remain the government’s top priority, leftover funds will also be directed toward reconstruction.
Previous three-tier elections had cost Rs 25 billion, and this time the expenditure is expected to be lower. However, Khanal noted that the budget could rise due to heightened security needs and the destruction of some municipal buildings during recent unrest.
The cabinet is already working to resolve logistical challenges faced by the Election Commission, he said. Once the commission finalizes its requirements, the finance ministry will arrange the necessary budget.
Minister Khanal also shared that the Ministry of Finance has prepared a Business Recovery Plan, soon to be tabled in the cabinet. The plan envisions a special fund to serve three purposes: providing additional support to families of those who lost their lives, rebuilding public infrastructure, and assisting in the restoration of damaged private property.
He explained that support for the private sector would largely come in the form of customs duty exemptions on the import of construction materials rather than direct payouts. The auto and hotel sectors are among the hardest hit, he noted, but businesses have shown strong morale and commitment to recovery.
Khanal emphasized that the government’s immediate priority is to restore public confidence, ensure treatment for the injured, and provide compensation to bereaved families. Damage assessments are being carried out jointly by the Ministry of Urban Development, the National Disaster Risk Reduction and Management Authority, and other agencies.
If budget reallocations fall short, the government is prepared to mobilize additional resources through crowd-funding mechanisms, he added.
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