Rs 820 billion required to run federal system

Kathmandu / Dec 13: A preliminary estimate by the Finance Ministry shows that at least Rs 820 billion would be required to run the federal administration for the next three years.

This will include the establishment of provincial infrastructure in the first phase, including the administrative units for the second tier of government.

A significant amount will be spent on buildings, vehicles, employees’ training and the like in the first phase and meeting the initial cost of 800 billion rupees will be challenging, Finance Secretary Shanker Prasad Adhikari said. Around 40 billion alone will the required for civil servants expected to take voluntary retirement instead of adjustment in the new federal structure.

Legislature, Executive and Judiciary infrastructure are being set up in all the seven provinces while staff and offices will also be required. A financial burden of Rs. 10 billion will have to be faced for establishing the provincial structures, preliminary estimates say.

The existing cost however at the center will be less in compared to the present with a limited number of ministries as per the new constitution.

Finance Secretary, however, believes that the formation of a new government with a five-year mandate will attract investment in the country with the promotion of a favorable atmosphere, and thereby also help meet the expenses. RSS