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Budget and Programme Division

 

Vision

To ensure effective national resource management through prudent annual development plans and programs and to contain budget deficit at desirable level

Mission

Help implement fiscal policies of Government of Nepal by designing public expenditure plans in order to achieve sustainable and pro-poor economic growth through stable, prudent and sustainable macroeconomic environment.

Strategic Goals, Objectives and Activities

Strategic Goal 1: Achieve allocative efficiency of budget
Activities:

  • Strengthen project screening and project appraisal capacity.
  • Rationalize and right size regular expenditure.
  • Curtail unnecessary and low return yielding projects and apply economic rate of return in selecting projects wherever possible.
  • Introduce performance-based allocation, Introduce multi year funding system so that core projects do not go under funded.
  • Complete mid-tern budget review on time so that optimal cash management could be ensured.
  • Establish a project bank to select and prioritize projects.
  • Ensure adequate fund for Operation and Maintenance.

Expected outcome:

After allocating resource in such projects and activities that are found to be economically viable, 'the value for money' could be ensured. It would not only result in high returns to government expenditure but also lead to the crowding in of private sector economic activities.



Strategic Goal 2: Achieve operational efficiency of budget
Activities:

  • Ensure timely presentation of the budget in order that budget could be implemented immediately after the commencement of the fiscal year.
  • Timely release of budget to the field offices.
  • Ensure timely disbursement of necessary counterpart fund.

Expected Outcome:

Ensure completion of the projects and activities within stipulated time to avoid cost and time overruns



Strategic Goal 3: Help maintain macroeconomic stability
Activities:

  • Integrate fiscal forecasting with other sectors of the economy such as real sector, external sector and monetary sector with adequate exercise in financial programming to ensure macroeconomic consistency and stability.
  • Maintain regular expenditure to six percent of Gross Domestic Product by fiscal year 2074/2075 BS.
  • Limit domestic borrowing to one percent of Gross Domestic Product.

Expected Outcome:

Contain fiscal deficit to the desirable limit to maintain macro economic stability.



Strategic goal 4: Standardize budget classification to recurrent and capital expenditure
Activity:

  • Redefine and reclassify regular and capital expenditure in conformity with international standard.

Expected Outcome

Classification of budget will be simple and comprehensive. Easing preparation of financial reports and National Accounts.



Strategic goal 5: Improve financial management information system (FMIS):
Activity:

  • Redesign expenditure reporting so that it could cater the needs of various development partners,
  • Maintain effective communication system with National Planning Commission, line ministries, Financial Comptroller General Office and Nepal Rastra Bank,
  • Develop expenditure reporting in terms of output instead of input.

Strategic goal 6: Discourage extra and non-budgetary practices.
Activities:

  • Strengthen the capacity of line ministries to propose the programmes within the parameter of budgetary ceiling.
  • Reflect all direct payment and commodity aid under the budgetary domain of the government.

Expected outcome:

Government fiscal operations will be more transparent and comprehensive



Strategic goal 7: Identify new avenues for effective and efficient public service delivery mechanism
Activities:

  • Initiate activities of contracting out of basic services such as cleaning, sweeping, gardening, driving, security guarding, outsourcing of some services cost effectively, management contract in order to ensure the effective service delivery mechanism.

Expected output:

More effective and efficient public service delivery will be maintain



Strategic Goal 8: Establish linkage between authority and accountability
Activities:

  • Provide adequate budget to project managers and entrust them with the power to adjust budgeted amount from one line item to another.
  • Develop proper mechanism for check and balance so that chances for embezzlement are reduced.
  • Strengthen fiscal rules and regulations so that transparency is maintained.

Expected outcome:

It will increase incentives for efficient and effective use of fund, transparent mode of procurement.



Strategic Goal 9: Ensure predictability (both within the same year and from one year to the next) and transparency of budget
Activities:

  • Stop ad hoc financing of projects and activities
  • Ensure that adequate funding will be available for the projects or activities once they are carried out with proper study and thoughtful calculations,

Expected outcome:

It will broaden planning horizon of line agencies and implementing units from just one year to end of project or activity.



Strategic Goal 11: Discourage incentives to spend everything in the budget early in the year in the case of regular expenditure and in the last hour in the case of development expenditure.
Activities:

  • Initiate zero base budgeting this will help to stop incremental budgeting and give message to line agencies that last year's expenditure is not going to serve as the starting point for next year's budget discussion and allocation.
  • Reduce across the board budget cut during the budget implementation caused by the revenue shortfalls.

Expected outcome:

This would help ensure fiscal discipline

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