No hike in old age allowance, civil servants’ salary


, May 22

The (), which is in the final stage of preparing the budget for fiscal year 2020-21, has clarified that of old people and the salary of civil servants will not be raised and remain the same next year amid limited resources and new financial liabilities created by the COVID-19 pandemic.

While MoF officials said that the focus is being given to the health sector, COVID-19 responses, employment generation and infrastructure projects in the upcoming budget, austerity measures are being adopted with available resources by not allocating budget for low-priority projects, reducing unnecessary public expenses and not raising old-age allowances and salary of government staffs.

“As the government is facing huge additional financial liabilities due to the spread of the coronavirus, it is high that the government adopts austerity measures and allocates budget for only priority projects and programmes,” said an official at MoF seeking anonymity. “While the health sector will be the primary focus of the budget,
resources will also be allocated for priority projects, especially those related to infrastructure as such projects will play a crucial role in generating additional employment opportunities,” the official informed.

Despite suggestions from experts and stakeholders to bring a limited sized budget this year concentrating on COVID-19 responses and the health sector amid resources crunch, the Ministry is also expected to allocate budget for mega railway, waterway and airport projects as announced in the government’s policies and programmes, which means that the size of the budget for next year could be even larger than this year’s budget of Rs 1.32 tr

Read the full story on The Himalayan Times

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