Jul 24 2026

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Government Cuts Perks for Retired Officials to Reduce Unproductive Spending

Government Cuts Perks for Retired Officials to Reduce Unproductive Spending

Friday, September 26 2025

Kathmandu, In a move aimed at promoting fiscal discipline and reducing unproductive government expenses, the Nepali government has decided to cut off additional facilities previously granted to retired political and administrative officials.

Following a Cabinet decision made on Asoj 5, the Ministry of Finance has formally written to the Ministries of Home and Defense to withdraw vehicles, security personnel, and other unauthorized facilities currently being provided to former officeholders.

From now on, only the benefits clearly stated in existing laws and approved standards will be granted to such individuals. Any vehicles, goods, assistants, or security staff provided beyond legal entitlement must be immediately returned, and all illegally availed services will be discontinued, the Finance Ministry has clarified.

This decision is part of the government’s broader effort to curb unnecessary spending and maintain budgetary efficiency. It is expected to curb misuse of public resources and foster a culture of transparency and accountability in public finance.

The Home and Defense Ministries are now responsible for implementing the directive by recalling the unauthorized facilities from their respective former officials.