The Ministry of Finance has issued a circular to all ministries, government bodies, provincial governments, and local levels to assess the implementation status of the government’s recent decision on cost-cutting and fiscal discipline. According to Joint Secretary and spokesperson Tank Prasad Pandey, the circular was sent in the last week of Asoj, and further policy decisions will be made once the collected reports are reviewed.

The Cabinet, in a meeting on Asoj 5, approved measures aimed at reducing unproductive spending across all tiers of government: federal, provincial, and local.

Under the decision, public infrastructure maintenance, essential service operations, election-related expenses, and development projects linked to economic recovery will be prioritized. Budgets will not be reduced for ongoing projects that already have secured funding sources. However, new or inadequately prepared small projects, or those duplicated in the LMBIS system, will be frozen under the Financial Procedure and Fiscal Responsibility Act, 2076.

Budget allocations that lack clear justification or fall outside intended purposes will also be suspended. Fragmented local-level projects, often implemented through provincial and municipal channels, will face postponement. Projects with purchase contracts completed or nearly finalized by Asoj 2 may be released upon ministry recommendation.

In the case of recurrent expenditures, programs with unclear modalities or uncertain outcomes will have their funding stopped. The government has also barred meeting allowances for routine tasks, disallowed housing allowances for officials using private residences, and prohibited hiring temporary or contract employees beyond approved staff quotas.

Advisors may not be appointed for political officeholders except for the President, Vice President, Prime Minister, Speaker, and Chairperson of the National Assembly. Secretariat staff for ministers and provincial heads will be limited to a maximum of three individuals.

Foreign visits are now heavily restricted for officials at all levels of government. Only visits deemed absolutely necessary will be permitted. Even in cases requiring government representation abroad, the related diplomatic mission will be authorized to take the lead. Delegations led by the head of state or head of government will be limited to 10 members, while other government-funded foreign trips may include no more than 3 individuals.