Nepalwatch

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5th of July 2025

Finance Committee Demands Transparency on USAID Expenditures in Nepal

Kathmandu- Members of the Finance Committee in the House of Representatives have demanded the public disclosure of the expenditure details related to programs funded by the United States Agency for International Development (USAID) in Nepal.

During today’s meeting of the Finance Committee, MP Ganga Karki emphasized that the government must clarify where and how the funds received through USAID have been spent, citing that U.S. President Donald Trump had labeled the expenditure as “fraud.””U.S. President Trump has called the funds provided by America for Nepal’s financial federalism ‘fraud.’ Informally, I have heard that this amount was spent through the Natural Resources and Financial Commission. A response should be sought from the Commission on this matter,” MP Karki stated.

MP Gyanendra Bahadur Karki noted that it is necessary to understand the context in which the U.S. President referred to USAID’s assistance as “fraud.” He also mentioned that when he was the Finance Minister, he had signed the Millennium Challenge Corporation (MCC) grant agreement, which had been passed by all political parties in Parliament. He further suggested that there should be a swift discussion on the bills currently being debated in the Finance Committee and the prompt conclusion of the discussions.

MP Surya Bahadur Thapa Chhetri argued that the matter raised by the U.S. President should be discussed in Parliament, not in the committee. “There is no need for a discussion on President Trump’s comments in this committee. This is more of a matter for the Parliament,” he said. “We can ask the Ministry of Finance for details on the expenditures made by USAID, including the time and the programs it was spent on. Let’s send a written request to the Ministry for these details.”

Additionally, MP Chhetri raised concerns about the Finance Committee’s meetings often running late, with excessive discussions on matters not included in the agenda, and the effectiveness of the committee’s work being diminished.