Following today’s meeting of the House of Representatives (HoR), Finance Minister Janardan Sharma spoke to members of the media at the Federal Parliament Building in New Baneshwor, where he said that government expenditure could be suspended for a few days.
This is likely to be the first time in Nepal’s history that government expenditures will be frozen indefinitely. According to the economic terminology, this state is known as a “budget holiday.”
After the former administration, led by the Communist Party of Nepal (CPN), published the ordinance budget for the current fiscal year on May 29, it was presented in the federal parliament the following day, on July 19.
An ordinance must be passed within 60 days, according to the provisions of the law. A similar argument might be made that the Appropriations Bill should have been passed by Wednesday. Since the House’s inception on September 8, the Bill’s approval has been in doubt due to the UML, which is currently in command of the main opposition, continuing to delay the proceedings.
The House of Representatives may vote today on a proposal submitted by the Finance Minister in order to get consideration for the Bill. The proposal is expected to pass. The Finance Minister, when asked about the potential of a “budget holiday,” responded by saying that the budget would be passed through the proper parliamentary procedures.
The next sitting of the House of Representatives has been set for September 20. According to the Minister, there would be no roadblocks in the collection of revenue, and it would be carried out on a regular basis.
In response to a question about whether the administration was ready to introduce the “vote on account bill,” he stated that the government had not considered the possibility.
While the government may be unable to spend for a few days, the Appropriations Bill would be endorsed through the regular legislative process.
On September 10, the government introduced a bill to replace the ordinance budget, which was met with protests from members of the opposition.
Despite the fact that Speaker Sapkota scheduled an all-party (those in the House of Representatives) meeting on Monday in an attempt to resolve the crisis, the meeting ended in failure since the United Muslim League did not attend.