Kathmandu, Oct 18: The Ministry of Finance has frozen funds allocated for road projects in Jhapa and Dadeldhura, the home districts of former Prime Minister KP Sharma Oli and Nepali Congress leader Sher Bahadur Deuba. The cuts follow the new government’s post–“Gen Z Movement” decision to curb public spending.
According to the ministry, the budgets for Jhapa’s Damak–Gauradaha–Gaurigunj Link Road Project and Dadeldhura’s Link Road Program have been withheld. The move is part of a Cabinet decision made on September 21 to stop small-scale projects under NPR 30 million.
Under the Physical Infrastructure and Transport Ministry, six major programs worth NPR 29.11 billion faced cuts, with NPR 16.30 billion now frozen. These include the Local Road and Bridge Construction Program, Alternative Highway Development, Highway Upgrading and Rehabilitation, and Lele–Bhardev–Chandanpur Road Project.
In Jhapa, NPR 69 crore had been earmarked for 11 local road schemes, including NPR 20 crore for the Padajungi–Gaurigunj–Altabari section and NPR 10 crore for blacktopping roads connecting to the Indian border. In Dadeldhura, NPR 48 crore had been allocated for eight local road and repair projects, including NPR 20 crore for the Bagbazar–Pokhara stretch.
Officials confirmed that only Jhapa and Dadeldhura’s link road programs have been fully frozen, while other provinces faced partial budget holds.
The Urban Development Ministry saw the largest cut, losing NPR 61.76 billion—about 67 percent of its annual federal allocation of NPR 91.34 billion. Ministry spokesperson Narayan Prasad Mainali said reports are being compiled to determine which essential programs should have funds released.
Overall, the Finance Ministry said it has suspended over 1,300 small projects across ministries, saving nearly NPR 120 billion in capital expenditure this fiscal year.
-People's News Monitoring Service