Civil Servants Allowances to be scraped, expect for forefront workers

The government is to scrap all sorts of allowances of the civil servants to control public expenditure in wake of COVID-19 crisis. It will, however, not be applied in the case of those working in the forefront during COVID-19 crisis.

Finance Minister Dr Yubaraj Khatiwada, unveiling the budget for new fiscal year 2020/21 in parliament today, announced that all the incentives, allowances and perks of government employees would be scrapped effective from first of Shrawan (mid-July).

The move is aimed at controlling public expenses and adhere to austerity measures. Expenditures would be cut down heavily on those incurring while running offices, fuel, maintenance, domestic or foreign trips, furniture, procurement of vehicles, seminar and workshop of lesser priorities among others.

The allowances of health workers and security personnel working in forefront during the lockdown will not be cut. “All other incentive, over time allowance, meeting allowance, snacks allowances and risk allowances among others being entitled to government employees will be scrapped effective from first of Nepali month Shrawan,” Minister Khatiwada said.

The government, after the recommendation of Public Expenditure Review Commission, will scrap those public entities which were not-so necessary as per the nature of work and work load.

According to the new budget, all new appointments in the vacant posts in the government agencies except for those essential services will be halted for the time being.