News

Ministers allowance to be reduced

July 2, 2023 4:43 pm

All government ministers, including assistant ministers and the Prime Minister himself, will undergo a major allowance reduction.

This was confirmed by Finance Minister Professor Biman Prasad during his budget announcement on Friday.

He says the current travel allowance of the Prime Minister will be reduced from the 250 percent per diem loading to only 100 percent.

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“It’s not just about throwing more money at every problem. We are completely changing our approach to this. The focus now will be on the efficient and effective use of every single dollar. We are going to cut waste and unnecessary spending by starting ourselves. And we will start this at the Ministerial level to set an example.”

Professor Prasad says in addition to the 20 percent reduction in pay, they are significantly cutting down on ministerial travel allowances that were put in place by the previous government.

Ministers will have their top-up reduced from 200 percent to only 50 percent, and for assistant ministers, the top-up will be reduced from the current 100 percent to 25 percent.

He adds that apart from these major reductions, they will also remove all the exorbitant incidental allowances that are currently provided.

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