Interim Finance Minister Rameshwar Khanal has stated that the budget allocation for fundamental sectors like health and education has decreased over the past ten years.
Speaking at an event held in Kathmandu on Thursday, he said that the reduction in the health sector budget is not a positive sign. Despite an overall increase in the country’s revenue structure, the allocation for health and education has gone down, he added.
Khanal suggested that the budget cut might be due to a lack of proper coordination between the Ministry of Finance, the National Planning Commission, and other government mechanisms. He emphasized that such issues cannot be fixed instantly and require gradual reform.
He also stressed that the government should take responsibility for settling pending payments under the Health Insurance Program. Khanal said he supports clearing all outstanding dues and has urged the Health Minister to expedite the payment process.
He noted that the current government cannot halt payments just because past governments did. However, he called for a reassessment of whether the health insurance structure is sustainable, saying the state should not maintain systems it cannot financially support.
Khanal emphasized the need to ensure sufficient financial access for health institutions and said the Ministry of Finance cannot cut the health budget without reason—although immediate budget approval is also not always possible. He urged all stakeholders to focus on the proper utilization of national resources.
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