Kathmandu: The Ministry of Finance has released a comprehensive 95-point guideline to direct the execution of the budget for the fiscal year 2082/83 (2025-26). These guidelines have been circulated to all pertinent ministries, departments, and bodies.
According to National News Agency Nepal, the guidelines clarify various aspects of budget implementation, including budget authorization, program approval, budget allocation, project implementation, fund transfer, and program amendments. The Ministry emphasizes the importance of adhering to these guidelines to ensure financial transparency, accountability, and effective monitoring. It has been instructed that procedures for budget-related plans and programs be prepared by the end of the Nepali month Shrawan.
The guidelines mandate the selection of project leaders through internal competition to ensure effective project execution within specified timelines. Standards must be set to prevent the transfer of project chiefs during the project duration unless performance criteria are not met. Additionally, the guidelines hold officials accountable for increased costs due to delayed decision-making.
To expedite project work, a circular has been issued to arrange work in three shifts. The Finance Ministry has instructed the creation and modification of sample tender documents for public procurement. It is mandated that payments for completed work be settled within a month after each quarter. There are restrictions on reallocating funds across activities once allocated.
The procurement process is strictly regulated, requiring completion of preparatory work, including site management and environmental impact assessments, before proceeding. The guidelines advocate for frugality in administrative expenses, urging the use of government facilities for meetings and workshops.
The directive also includes the auctioning of non-operational goods like vehicles and electronics within six months. New vehicle purchases require ministry consent. Any foreign visits require prior approval, with exceptions for high-level diplomatic engagements.
The guidelines emphasize the submission of annual financial details to the Government Treasury and Financial Comptroller Office within 12 days after the fiscal year ends. Payments exceeding Rs 1 billion require prior notification to the Finance Ministry. Online monitoring of development projects and regular progress reporting are also mandated.
Fiscal equalization grants will be transferred in installments based on revenue targets, with remaining unspent grants returned to the Federal Reserve Fund. These guidelines are intended to ensure that budget execution aligns with allocated funds and enhances the effectiveness of public spending.