Kathmandu: The Ministry of Finance has announced the creation of a taskforce to draft a new law aimed at enhancing budget discipline across the country. This initiative is part of a broader effort to improve public financial management and ensure efficient allocation of resources.
According to National News Agency Nepal, Mahesh Baral, who leads the Fiscal Federalism Coordination Division within the Ministry, has been appointed as the coordinator of this taskforce. The team also includes key officials such as the Under Secretary from the MoF Budget Formulation Division, the Under Secretary from the Legal and Judgement Execution Division, and former Joint Secretary Nirmal Hari Adhiakri, who will serve as a theme expert. Additionally, the Under Secretary of the Fiscal Federalism Division will act as the member-secretary.
The formation of this taskforce aligns with the goals outlined in the current fiscal year’s budget speech. Specifically, point number 359 emphasizes the need to enhance the efficiency of public financial management, improve the outcomes of public spending through disciplined budgeting, and manage cash flow to maintain balance in the Federal Reserve Fund. Furthermore, the budget speech highlights the importance of using public borrowing sustainably in productive sectors and implementing a comprehensive public financial management strategy.
Point number 371 of the budget speech further underscores the necessity for a law to reinforce budget discipline at federal, provincial, and local levels in accordance with the constitution. The Ministry of Finance’s decision to establish this taskforce is a direct response to these budgetary provisions, aiming to bring about significant improvements in fiscal governance.