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ECONOMY

Budget earmarks Rs 242.21 billion on govt employees’ payment for FY 2026/27, an increase of Rs 75 billion

For this year, the government has allocated Rs 167.21 billion to pay the individuals engaged in various government offices.
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By REPUBLICA

KATHMANDU, June 2: The government has allocated Rs 242.21 billion to pay remuneration of the government employees for the next Fiscal Year (FY), which is Rs 75 billion more than the amount spent for the current FY.



For this year, the government has allocated Rs 167.21 billion to pay the individuals engaged in various government offices. Last year, the allocated amount was Rs 154.43 billion including remuneration and allowances of the employees and office bearers.


In a breakdown, a total of Rs 187.87 billion has been allocated for the remuneration of employees and Rs 1.60 billion for the remuneration of office bearers. For office uniform allowances, the government has set aside Rs 6.68 billion, which is Rs 2.41 billion more than the current FY. Last year, Rs 3.97 billion was spent on the heading.


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Similarly, the budget for food allowance has been increased from Rs 16.73 billion to Rs 17.91 billion. The medical treatment expenses have been increased from Rs 787.7 million to Rs 1.61 billion.


The amount targeted for the local allowance has also been increased, from Rs 926 million to Rs 1.18 billion. The budget under the heading of dearness allowance has been increased from Rs 12.01 billion to Rs 15.61 billion. Similarly, under the travel and daily allowances, the amount has been increased by Rs 700,000 to Rs 147 million.


The amount for foreign allowance and other allowances of employees have been increased. The government has allocated foreign allowance worth Rs 1.237 billion for FY 2026/27, up from 955.8 million this year. The amount under the heading of other allowances has been increased from Rs 1.77 billion to Rs 1.83 billion.


On the other hand, the meeting allowance of employees has been reduced. While Rs 244.9 million has been allocated under this heading in the current year, it will be Rs 171.3 million for the next FY. The budget under the employee incentive heading has been reduced from Rs 511.9 million to Rs 507.6 million.


In addition, the government has earmarked Rs 5.28 billion for the social security purpose of employees. This amount is Rs 1.41 billion more than that of the current FY.


Overall, the government has announced a 21 percent increase in salaries for government employees while introducing a broad package of welfare, infrastructure, sports and healthcare measures.

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