The Council of Ministers decided at a meeting at Singha Darbar on Sunday to announce the election date by the end of this week.
Minister for Physical Planning and Works, Hisila Yami, told the press the government will seek help from international organisations to fund the elections. Internal resources will also be mobilised to raise money for the polls, she added.
Alleged Indian encroachment by India into Nepal's border areas was also discussed at the cabinet meeting. Amidst mounting pressure from farmers in the Susta region, the prime minister is reportedly to have agreed to step up diplomatic pressure on New Delhi to address the issue.
Health minister Girijamani Pokhrel said the cabinet meeting also took up the question of what to do with smuggled red sandalwood that have been confiscated. The meeting also extended the deadline for the commission which has been investigating the Kapilbastu riots in November. The meeting has also agreed on appointing Dr Govinda Bahadur Thapa as the chairman and K B Limbu as the Managing Director of Nepal Airlines.