Government initiates inclusive budget discussions for FY 2024/25

KATHMANDU: The government has begun discussions with the relevant ministries regarding the budget for the forthcoming fiscal year 2024/25.

In line with this, National Planning Commission (NPC) has engaged in discussions with various related ministries and agencies. "Before establishing the budget ceiling for the upcoming year, we have initiated discussions with various relevant ministries to determine the necessary plans, programmes, and the required budget," stated NPC Spokesperson Yamlal Bhusal.

It's worth noting that the Resource Estimation Committee is presided over by the NPC Vice-Chairman. In previous years, the committee set the budget limits without the involvement and discussion of the relevant ministries. This led to discrepancies in budget allocation according to priority plans and programmes.

Spokesperson Bhusal stated that the budget ceiling will now be determined based on prior discussions of the aforementioned concerns. After analysing the expenditure status up to mid-January of the current fiscal year, the estimates for next year's budget and expenditure limit will be determined.

The NPC has held discussions on budget priorities and ceilings with the Ministries of Labour, Employment and Social Security; Urban Development; Forests and Environment; Health and Population; Energy, Water Resources and Irrigation; and Culture, Tourism and Civil Aviation.

Discussions have been held with the Office of the President and the Vice President, the Supreme Court, and other agencies. Discussions with other ministries and agencies will continue on Thursday and Friday. A unilateral discussion will also be held with each ministry and agency.

Budget calendar amended

Furthermore, the government has amended the annual budget calendar. President Ramchandra Paudel issued the ordinance on Economic Work Procedure and Financial Accountability (first amendment), 2080, which requires the submission of budget principles and priorities three months before the budget is presented to the parliament.

Similarly, the timeline to determine the budget ceiling by the resource determination committee has been revised.

The change mandates the government to present the principles and priorities of the appropriation bill before Falgun 15 (February 27). Similarly, the parliament holds a month-long deliberation on principles and priorities to forward suggestions to the government.

The resource estimate committee will prepare the budget ceiling by the end of the month of Magh (February 12) and provide it to all ministries before the first week of Falgun.

Even the mid-term expenditure report will be sent to all ministries before the first week of Falgun (mid-February) as per the revised budget calendar.

Meanwhile, the NPC has already requested proposals for projects and programmes from the provincial and local levels. They have been asked to submit proposals before the end of Magh (February 12).