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POLITICS, Republica Watch

Govt’s foreign trips overshadow cabinet’s austerity pledges

Eight foreign trip decisions among 24 cabinet decisions expose govt’s failure to implement austerity pledge. 
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By RAJESH KHANAL

KATHMANDU, Sept 2: Despite repeated pledges to limit foreign visits by high-level officials to reduce unproductive expenditures, the government has failed to uphold its own commitments.



On Monday, the government released the decisions of the Cabinet meeting held on August 29. Of the 24 points adopted, eight pertain to approvals for foreign visits by senior officials.


The Cabinet meeting on March 5, 2025, had decided to curb and streamline foreign trips by ministers and secretaries, citing growing public concern over the mismanagement of official visits and junkets. Successive governments have made similar commitments, announcing measures to reduce foreign travel as part of austerity efforts, but these have rarely been implemented.


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In 2021, the government issued new austerity standards limiting official observation trips abroad. No foreign visit was to include more than three officials, except for VIP visits. Likewise, government agencies were restricted from sending more than three personnel for project monitoring. These guidelines, however, remain largely unimplemented.


The March Cabinet decision also stipulated that official delegations led by the President or Prime Minister should not exceed 21 members. Yet, the current Nepali delegation to the Shanghai Cooperation Organisation (SCO) Summit 2025 in China, led by Prime Minister KP Sharma Oli, includes 23 members.


“The government has failed to check excessive foreign visits despite its commitments. This is a waste of taxpayers’ money and puts unnecessary pressure on state finances,” said a former government secretary, speaking on condition of anonymity.


Of the Rs 1.964 trillion budget for the current fiscal year, Rs 1.1809 trillion (60.1 percent) has been allocated for recurrent expenditure, while only Rs 407.89 billion is earmarked for development projects. Government records show that more than Rs 3 billion was spent on official foreign trips last fiscal year, with additional budget transfers made to cover such expenses.


Former Finance Secretary Rameshwor Khanal said the government’s austerity measures remain largely rhetorical. “Many high-level officials prioritize foreign visits whenever possible,” he noted.


Amid inadequate revenue collection, excessive official travel continues to strain public finances, contributing to a rising public debt burden. In FY 2024/25 alone, public debt increased by Rs 231.08 billion, taking the total debt to Rs 2.669 trillion. Last fiscal year, Nepal spent nearly Rs 362.59 billion solely on servicing principal and interest payments on domestic and foreign loans.

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