Sent to employees of the Ministry of Finance and the Comptroller General as a test
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The government has started distributing salaries to employees every 15 days. The Ministry of Finance has stated that salaries were sent to employees of the Ministry of Finance and the Office of the Comptroller General on Wednesday as a test.
The government plans to start the same system for the federal government, as well as for provincial, local level and government teachers. According to the same plan, in the first phase, salary and allowance distribution has been started to employees of the Ministry of Finance and the Office of the Comptroller General on a fortnightly basis as a test.
The Ministry of Finance had written a letter to the Office of the Comptroller General on 4 Baisakh 2083 to prepare for distributing salary and allowance to employees every 15 days in the first week of Baisakh.
In this way, by paying salaries to employees every 15 days, it is seen that about 8.5 billion rupees will flow into the market every 15 days. Once the decision is fully implemented, it is seen that about 8.65 billion rupees will flow into the market every month.
For the current fiscal year, the government has allocated 98 billion rupees for teachers, federal civil servants, service, police and other public servants across the country and 225 billion rupees for federal government, civil servants, army police and public servants. Of this, 98 billion rupees have been allocated for teachers and 127 billion rupees have been allocated for federal civil servants, service, police and other public servants.
From the allocated amount, civil servants, police and other public servants receive 13 months' salary, including one month's additional salary during Dashain. When the allocated amount is divided into 13 months, approximately 17.3 billion rupees are currently spent on the salaries of teachers, federal civil servants, army, police and other public servants per month.
According to the government's preparations, after the work of paying salaries to employees every 15 days begins, approximately 8.65 billion rupees will flow into the market each time. "While the distribution of salary and allowance benefits to civil servants has been done monthly after the end of the month, now in the context of starting the practice of paying it semi-monthly, it is requested to make the necessary arrangements for the semi-monthly distribution as per the decision of 4 Baisakh 2083 (Finance Minister level)," the Ministry of Finance said in a letter to the Office of the Comptroller General.
Nepal's economy has been sluggish for the last few years. Industries are operating at less than half their capacity utilization. For the last three years, loanable funds have been piling up in banks and financial institutions. Interest rates have fallen to an all-time low. Overall demand in the market has not been able to increase. The morale of the private sector is at a historically low level. Economists have been suggesting that money should be put into the hands of citizens to improve the economy in such a situation and that it will increase market demand, so economic activity should be kept moving.
Most developed countries have been paying salaries to employees every two weeks. Economists say that Nepal should also implement the good practices of developed countries, and this will provide relief to low-income families and families dependent on salaries.
