March 31: As the economic crisis in the country deepens, the provinces have also started cutting their budgets. While the federal government has already adopted austerity measures, the provinces have also followed suit. The provinces have reduced 20 per cent of the amount from the budget of the current fiscal year.

The provinces have reduced the expenses from allowances for office operations under various headings. They have reduced fuel expenses, vehicle maintenance expenses, maintenance and operation of machinery tools, operation and maintenance of the public property, furniture and office supplies, printing and publication of information, and staff training.

Minister of Economic Affairs and Planning of Karnali State Government, Binod Kumar Shah said that the expenditure has been cut under 22 headings of current expenses and five headings of capital expenditure. He said that the government cut spending to maintain austerity measures.

The Madhesh government has also downsized budget of subordinate ministries and offices. A Minister of Madhesh Province informed New Business Age that the government has instructed the subordinate ministries and offices to reduce public expenditure by 20 per cent as economic activity has contracted and revenue cannot be collected as per the target in the current fiscal year.

An official of the Ministry of Social Development of Madhesh Province said that after the government stopped the budget, the daily work related to health was also affected. The provincial government has instructed to cut expenses on 27 different topics, including furniture and office supplies, office operations, services, information, newspapers and consulting services, building communication improvements, skill development and public awareness training seminars.

Even after eight months of the current fiscal year, the development budget of the state government is weak. Officials shared that budget cuts will reduce expenses even further.

Lumbini province has also cut its budget by 20 per cent. The spokesperson of the Ministry of Economic Affairs, Surendra Pandey, said that expenditure on training, fuel, vehicle maintenance, information and publicity has been reduced.