By A Staff Reporter
Kathmandu, Apr.30: The government has begun paying civil servants their salaries every 15 days. The initiative has been implemented from Wednesday as a pilot project. The programme was formally launched by Finance Minister Dr. Swarnim Wagle at an event held at the Ministry of Finance (MoF).
The system was initiated after the Financial Comptroller General Office (FCGO) sent payment orders to the Treasury Controller Office through the Computerised Government Accounting System (CGAS). Following the minister’s directive, employees at the MoF received the first half-month salary for the month of Baisakh (second half of April).
Finance Minister Dr. Wagle said the decision was taken to stimulate economic activity. “Paying salaries every 15 days will help keep the market active. Both consumption and demand will increase,” he said, adding that the system has been introduced as a pilot for federal civil servants and will gradually be extended to all government salary earners.
Financial Comptroller General Shova Kanta Poudel said that the system would gradually be extended to provincial and other public service employees. He noted that the office is technically prepared to implement the system and will expand it step by step.
According to Poudel, the existing system allows salaries to be paid either every 15 days or monthly, depending on employee preference.
He added that fortnightly payments would help create regular demand in the market and support economic activity. Poudel also said the system is expected to distribute consumption expenditure more evenly and improve cash flow for small businesses.
The decision to implement the pilot project was made by the Finance Minister on April 17.