Budget execution plan formulation begins

KATHMANDU: The Ministry of Finance (MoF) has started preparations for executing the budget for the upcoming fiscal year 2024/25. 

Finance Minister Barsha Man Pun on Friday held a preliminary discussion regarding the budget implementation plan with MoF secretaries, division chiefs, and senior officials from the Department of Customs and Inland Revenue. 

"Let us devise a plan to increase spending and implement the programs outlined in the budget. The greater our absorptive capacity aligns with the target, the more circular the market will become," he emphasised. 

The Finance Minister further stated, "Had public spending taking place in late June been executed six months earlier, it would have significantly impacted market dynamics. We would have seen  three circulars in the market if dynamic public spending patterns had been consistent in the past as they are now." 

Minister Pun instructed ministry officials to make quarterly plans for budget implementation, avoiding major festivals such as Dashain and Tihar. 

He also urged the ministry to promptly release equalisation grants to the local level. "Local governments are finalising their budgets. Let's transfer 100% of the equalisation grants to the local level to the fullest extent possible. If not, ensure that the grants exceed the previous year's allocation." 

Additionally, he encouraged senior officials to perform with confidence and courage, unafraid of taking necessary actions. 

Finance Minister Pun expressed confidence that Nepal Rastra Bank would align the upcoming monetary policy with the fiscal policy.