'Provinces must follow austerity rules'

By Shashidhar Parajluli,Biratnagar, Sept. 25: Finance Minister Rameshore Prasad Khanal has said that the austerity directives issued by the Ministry of Finance (MoF) on Tuesday must also be implemented by provincial and local governments.

Amidst growing dissatisfaction among provincial ministers who have raised concerns that, as autonomous and independent bodies, provincial governments are not obligated to implement decisions made by the federal Cabinet without passing their own laws, Minister Khanal stressed that the decisions of the Cabinet must be followed by all.

While visiting the Internal Revenue Office in Biratnagar, which was destroyed in a fire, Minister Khanal briefly responded to questions from the media, reiterating the need for everyone to cooperate in adhering to austerity measures.

The federal government’s decisions have raised uncertainty about the facilities for those appointed by provincial assemblies through provincial laws.

In response to the federal government's decision, Rewati Raman Bhandari, Minister for Internal Affairs and Law of Koshi Province, said that from a constitutional and legal standpoint, provincial governments are not bound to follow the federal government’s decision. He argued that the provinces have the autonomy to make their own decisions, and if changes are needed in provincial laws, they must be amended accordingly.

However, FM Khanal clarified that this decision was made for austerity purposes and must be implemented across all levels of government, irrespective of provincial laws. 

"This decision has been taken for austerity, and being a federal 

Cabinet decision, it applies to all bodies. No expenditure should 

be made from the federal government’s grants on these matters," he said. 

Minister Khanal further elaborated that even if appointments are made according to provincial laws, any expenses for these positions, which are funded by federal grants, should not be used for unnecessary appointments.

Minister Khanal indicated that while the federal government’s decision does not nullify provincial laws, it could impose restrictions on how federal grants are used.