The government intends to have more controlled spending by strictly adhering to the guidelines for Preparation, Appraisal and Approval of Projects under the Public Sector Investment Programme.

Finance Minister Biman Prasad states that government spending is projected to decrease from 32.5 percent of Gross Domestic Product in the financial year 2024-2025 to 28.1 percent of GDP by 2039-2040.

He says that their operating expenditure is also projected to decline from 23.1 percent to 18.2 percent during this period.

The Finance Minister emphasizes focusing on reducing unproductive spending, reviewing transfers to extra-budgetary units, streamlining operations, and prioritizing high-impact capital projects.

Prasad says the government is actively working with multilateral partners to reduce debt.

“To lower our cost of debt by replacing our expensive debt with more concessional loans. We are improving the quality of our borrowings by ensuring that all borrowed money is put to the best use so that we expand our productive capacity and generate future returns.”

Prasad also states that the Finance Ministry will be closely monitoring projects and budget utilization to ensure optimal outcomes.