Kathmandu, May 10
The government has decided to stop providing all allowances, except local and inflation allowances, that were being provided to government employees.
The new policy will be implemented from July 17.
The Cabinet meeting held on Wednesday endorsed a new policy so as to promote austerity and effectiveness in the public expenditure that was haphazardly spent by government authorities.
The office bearers in government offices were provided more than a dozen allowances, which was almost triple their salary.
The policy would also review the promotion system on the basis of work performance.
According to sources at the Ministry of Finance, more than three dozen points have been included in the policy to make the government officials prudent.