Budget Unblocked for Over 1,000 Stalled Projects, Development Activities Expected to Accelerate

The government has begun releasing budgets that were previously put on hold for infrastructure-related projects. The Ministry of Finance has approved NPR 31.69 billion for 1,142 projects across priority sectors such as drinking water, education, and health. According to the ministry, the funds were released based on necessity, justification, and preparedness, targeting both completed and ongoing projects of national importance. Earlier, after assuming office, Finance Minister Rameshwar Khanal had announced a freeze on budgets for poorly prepared and randomly selected “fragmented” projects. As a result, nearly NPR 90 billion worth of projects under ministries including physical infrastructure, urban development, energy, agriculture, and industry were placed on hold. Officials say that with the gradual release of funds for projects with long-term impact and progressed work, stalled development and construction activities are expected to regain momentum.