Kathmandu, July 18: The Ministry of Finance has issued 95-point guidelines for the implementation of the budget for the current fiscal year 2082/83 (2025-26), circulating them to all relevant ministries, departments, and bodies.
The Ministry issued guidelines regarding the implementation of the budget on Thursday, clarifying about what should and should not be done concerning budget authorization, programme approval, budget allocation, transfer and implementation of projects, fund transfer, and programme amendments, among other topics.
The ministry has also issued a circular on working responsibly for the implementation of provisions related to financial transparency, accountability and monitoring.It has been said that the procedures for the implementation of the plans and programmes included in the budget for the current fiscal year should be prepared by the end of this Nepali month Shrawan.
Similarly, the guidelines requires the bodies concerned to arrange for the selection of the project leader based on internal competition to effectively implement the project and complete it within the specified time.
It has been stated that the standards should be prepared and implemented so that the project chief is not transferred throughout the project duration, except in cases where the minimum score specified in the agreement is not achieved.
The budget implementation guideline also mentions that if costs increase due to not making timely decisions during project implementation, the responsible officials should be held accountable.
Circular has been issued through the budget implementation guidelines to make arrangements for carrying out work in three ‘shifts’ to intensify the work of the project. Likewise, it has been instructed to create, modify, and localize the sample tender documents related to public procurement.
“The payment for the work done by all entities must be compulsorily cleared within the month following the end of the quarterly period. No amount added from an allocation or transfer in any activity can be redirected or transferred to another activity,” the guidelines states.
After the decision to reduce the funds once for any activity towards capital expenditure by amending the programme for any capital activity, further budget allocation, transfer, or programme amendment proposals will not be allowed for the same activity.
The budget implementation guidelines states that the procurement process should only proceed after completing preparatory work such as site management, ensuring the removal of trees and other permanent structures that need to be removed from the construction site, land acquisition, and obtaining approval for the environmental impact assessment report that needs to be conducted in accordance with current laws.It is also mentioned in the budget implementation guidelines that frugality should be adopted in expenditures prudently.
“Administrative expenses such as water, electricity, communication fees, rent, fuel, maintenance costs, miscellaneous and office supplies costs, allowances, training, workshops, service fees, travel expenses, etc must be managed with maximum frugality. Austerity in public expenditure should be maintained in accordance with policies to make public spending economical and effective,” reads the guidelines.
It has been stated that when conducting programmes such as meetings, conferences, workshops, and interactions at government expense, the assembly halls of government agencies should be used.
The Finance Ministry has issued a directive to compulsorily auction goods like vehicles, furniture, computers, laptops that are not in a condition of operation even after repair and maintenance, within six months.
An arrangement has been made to purchase new vehicles only in necessity and the consent of Finance Ministry should be taken before purchasing such things.
A prior consent of the Finance Ministry should be taken before going on a foreign visit. It is said that the Finance Ministry would not give permission for foreign visit at government’s source except the situation of mandatory representation in high-level diplomatic visit and in international organisations which Nepal is a member.
Similarly, a prior consent should be taken from the Finance Ministry while making decision or presenting a proposal in the cabinet on the issues that create financial liability except the issues included in the approved budget and programmes as well as the government offices should use vacant government buildings with priority for office purpose as much as possible.
The budget implementation guidelines mentioned that an arrangement should be made to submit the annual financial details at the concerned Government Treasury and Financial Comptroller Office within 12 days of the ending of fiscal year.
Likewise, the Finance Ministry should be informed compulsorily before seven days if a payment of more than Rs 1 billion should be paid to manage cash flow. The issues like making arrangement to spend budget in accordance with allocated budget by carrying out online monitoring of development projects, preparing a progress report with sectoral achievement indicators carrying out regular monitoring and review of budget implementation as well as sending a report with problems and its reasons surfaced in implementation of budget to the National Planning Commission and Finance Ministry are mentioned in the guidelines.
While transferring fiscal equalization grant, first and second installment would be paid as per the estimation as well as third installment based on the ratio of revenue target or collection of last day of Poush, according to the Finance Ministry.
Similarly, the fourth installment would be re-determined and transferred based on revenue target and collection up to last day of Chait.All the remaining amount of conditional, supplementary and special grants should be returned to Federal Reserve Fund through the concerned Treasury and Financial Comptroller Office if all conditional, supplementary and special grants amount is not spent by the end of Asar of the fiscal year.
