Finance Minister Dr Ram Saran Mahat has said that the government is preparing to slash the expenditures of the Royal Palace and the expenses in unproductive areas will be checked.

Speaking during the Q&A session of the House of Representatives Wednesday Finance Minister Mahat said, “The [unnecessary] expenditure of the Royal Palace and unproductive sectors will be stopped while no financial liabilities will be created, including in the defense sector.”

“The expenditures of the Royal Palace will surely be reduced after a review. It will not remain as it is at present,” the Finance Minister told the MPs who sought his clarification on unnecessary government overheads. He, however, did not mention by what percentage the budget of the Palace would be slashed.

The previous government had allocated nearly Rs. 680 million for the Royal Palace for the current fiscal year while hefty amounts of money were channeled, apart from the regular budget, to the Palace and royal family members and relatives under different heading.

The Finance Minister assured that no new recruitments would be made in the Nepali Army but the government would take care of the rightful benefits of the armed forces. He said the government has already made public the current state of the national economy and its commitment, through the economic White Paper, to recover it from further downturn.

The seven parties have publicly committed to reduce defense expenditure and the budget of the Royal Palace.

Dr Mahat also said the government has already started process to check unnecessary expenditures in unproductive areas and informed that the Finance Ministry has issued circulars to concerned government bodies to this effect.