Economic Procedures and Fiscal Responsibility Bill registered in Parliament

KATHMANDU, AUGUST 18: The government has registered a bill in Parliament to amend the Economic Procedures and Financial Responsibility Act, 2076 BS. The bill aims to provide sufficient time for discussions on the government's policies and programs, streamline the annual budget submission process, manage additional financial obligations owed to the government by public bodies outside the budget system, and enhance the effectiveness of provisions for reducing wasteful expenditures.

Finance Minister Bishnu Prasad Paudel submitted the bill to Parliament recently, with the goal of regulating the operation, management, and related economic activities of the Federal Reserve Fund and other government funds. The Council of Ministers approved the submission of the bill on July 1. Last January, the government initiated the process of amending the act through an ordinance, but the ordinance was not passed by Parliament within the specified time.

A new provision in the bill mandates that provinces, local levels, and public bodies outside the budget system (extra-budgetary) must comply with the prevailing laws relevant to their levels or bodies and maintain accounts in accordance with the approval of the Comptroller General's Office.

The National Planning Commission, in coordination with the Ministry of Finance, is amending the provision requiring the projection of available resources and expenditure limits for the next three years—used to formulate the medium-term expenditure structure and the budget and program for the next fiscal year—to be completed by January 15 of the current fiscal year. The bill specifies that the budget ceiling should be prepared by mid-February.

The bill also states that the report on resource estimation and determination of the expenditure ceiling, prepared by the National Resource Estimation Committee and coordinated by the vice-chairperson of the National Planning Commission, should be submitted to the Finance Minister by around February 18.

"The guideline and outline related to budget formulation should be sent to the relevant ministries, commissions, secretariats, or entities by Fagun 7 (around February 18) of the current fiscal year. These guidelines should specify the budget ceiling, the outline of the medium-term expenditure structure, and the necessary amounts in line with the multi-year resource guarantee of the national pride projects, all while remaining within the resource and expenditure ceiling set by the Resource Estimation Committee," the bill states.

An amendment proposal has also been submitted to modify Clause 11 of the main Act. The current requirement for the Finance Minister to present the principles of the budget and programs, as well as the project or program priorities to be included in the Appropriation Bill, at least 15 days before presenting the bill, is being revised.

According to the proposed amendment, the principles and priorities of the budget and programs must be presented to the Federal Parliament three months in advance. The Federal Parliament is required to forward any suggestions, directives, or topics to be included or removed concerning the principles and priorities of the government by the 15th of Chaitra, after completing deliberations.

Additionally, the bill amends the provision concerning the deadline for 'budget surrender' to the Ministry of Finance.

 

 

 

 

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