Palace expenditures will be downsized: Finance Minister

May 2, 2006
2 MIN READ
A
A+
A-

Newly appointed finance minister Dr Ram Saran Mahat has said the new government will strictly “scrutinize” the budget allocated to the Royal Palace and will allot only the “essential and justified amount” to the palace.

“The government will strictly scrutinize the budget allocated to the Royal Palace and will allot only the essential and justified amount to the palace and all other unnecessary expenditures will be reduced,” Mahat told reporters after the swearing-in ceremony of the newly appointed ministers at the National Planning Commission hall in Singha Durbar.

The government, he said, will not make any unnecessary expenditure. “We will curtail the unnecessary expenditure and will spend whatever is necessary only,” he added.

“Nepal in real financial crisis now. The economy was already in bad shape and the nearly one-month long strike had paralyzed everything.”

The financial crisis will have to be managed, Mahat said, adding, “We will have to correct the past mistakes – both political and economic.

Many regressive actions have been taken [by the previous royal government]. We have to make correction to that including in the financial sector.”

He said the government would give high priority to relief, rehabilitation and reconstruction work (RRR). “Peace has returned in the country and we expect it to be stable.”

The finance minister was of the view that financial sector had shown positive indications immediately after the success of the people’s movement and the restoration of the House of Representatives. “The NEPSE index has gone up significantly that show the confidence of people in the new government,” he pointed out.

Dr Mahat was appointed as finance minister by Prime Minister Koirala today.

Dr Mahat also urged the tourists including the Indian tourists “to visit Nepal to beat the summer in their cities”. Kathmandu has the best sopping centers in South Asia so the South Asian tourists could visit Kathmandu right now, he said.