KATHMANDU: The government has decided to introduce sweeping spending cuts, establish a reconstruction fund, and form a high-level commission to investigate incidents linked to the recent Gen Z movement.

Announcing the Cabinet decisions on Sunday, Home Minister Om Prakash Aryal said that projects costing less than Rs 30 million will be halted in order to reduce state expenditure.

The government estimates that this measure alone could save nearly Rs 120 billion in recurrent expenses. However, contractors who have already completed projects but not yet received payments will still be compensated from the allocated budget.

To address damage from natural and other disasters, the government will set up a special “Reconstruction Fund.”

This fund will finance the rebuilding of public infrastructure and provide relief to affected communities.

The Cabinet also approved a provision granting up to 50 percent customs duty exemption on materials imported for reconstruction of public property destroyed during the Gen Z movement.

In response to public demands for accountability, the government has formed a high-level judicial inquiry commission to probe incidents that occurred during the September 8–9 protests.

The commission will be chaired by former judge Gauri Bahadur Karki, with former Nepal Police AIG Bigyan Raj Sharma and legal expert Bishweshwar Prasad Bhandari serving as members.

The Cabinet also endorsed measures to ease financial pressure on industries and businesses affected by the unrest.

Companies will be allowed to extend their loan repayment periods, while a Payroll Protection Plan will be introduced to safeguard workers’ jobs.

Minister Aryal stated that businesses capable of resuming operations with loans will be offered concessional credit, whereas those unable to take loans will receive direct financial support through the Reconstruction Fund.