Nepal Government Amends Financial Procedures to Expedite Development Payments
Summary
The Nepal government amended financial procedures allowing ministries to reallocate capital funds, aiming to speed up payments for development projects and boost economic liquidity.
Key Points
- The government issued the Financial Procedures and Financial Accountability (Third Amendment) Regulations, 2083 to delegate fund reallocation authority.
- Authority to reallocate capital funds is delegated to Accounting Officers of ministries/agencies to expedite payments.
- Previously, reallocations required Ministry of Finance approval, causing payment delays to contractors.
- The reform aims to enhance capital expenditure, improve market liquidity, and boost the sluggish economy.
