KATHMANDU: Finance Minister Rameshore Khanal has said that funds for several projects that were previously suspended following the formation of the current government have now been released.
Responding to queries raised by lawmakers during a National Assembly meeting on Wednesday, Minister Khanal stated that allocations for some low-priority and small-scale projects had been put on hold due to special circumstances at the time. He added that, based on revised priorities, funds for many projects have now been unfrozen and the projects are moving towards implementation.
He explained that the government had to manage resources for the reconstruction of structures damaged during the movement, resume public services, and allocate funds for elections. As a result, liabilities were created under various projects, making it difficult to ensure timely payments.
According to the minister, a Cabinet decision taken on September 21, 2025, had directed the reprioritization of projects and the adoption of austerity measures by cutting unproductive expenditures. In line with that decision, funds were only suspended for projects that had not completed preparations, had not entered the procurement process, or were unlikely to deliver significant economic benefits.
However, Khanal said that funds have now been released for important projects that have completed design work, are in the tendering phase or have already called tenders, and those that have signed agreements with user committees and are set to begin implementation.
He reiterated that the government remains committed to ensuring effective utilization of public resources while advancing priority development projects.
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