The Finance Ministry has frozen funding for road projects in Jhapa and Dadeldhura, home districts of former PMs Oli and Deuba, as part of a broader effort to cut public spending, affecting over 1,300 small projects nationwide.
Nepal Verified News
Sun Oct 19 2025
The Finance Ministry has halted funding for road projects in the home districts of former Prime Ministers KP Sharma Oli and Sher Bahadur Deuba, as part of a broader government effort to curb public spending.
Budgets for Jhapa’s Damak–Gauradaha–Gaurigunj Link Road Project and Dadeldhura’s local road schemes have been fully frozen under a Cabinet decision to suspend small-scale projects under NPR 30 million. In Jhapa, 11 local road projects totaling NPR 69 crore, including border connectivity roads, are affected. In Dadeldhura, eight local road and repair projects worth NPR 48 crore have been put on hold.
Across ministries, the Physical Infrastructure and Transport Ministry has seen NPR 16.3 billion frozen from six major programs, while the Urban Development Ministry faces the largest cut of NPR 61.76 billion, nearly 67 percent of its annual federal allocation.
The Finance Ministry has suspended over 1,300 small projects nationwide, aiming to save nearly NPR 120 billion in capital expenditure this fiscal year. Officials said reviews are ongoing to identify essential projects that may resume funding, though Jhapa and Dadeldhura’s link road programs remain fully halted.
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