Finance Ministry forms Budget Drafting Committee

KATHMANDU, FEBRUARY 28: The Ministry of Finance (MoF) has formed a Budget Drafting Committee for the preparation of the national budget of the coming fiscal year. Shree Krishna Nepal, head of the Budget Division, chairs the committee formed yesterday. Other members include Dhaniram Sharma, head of the Foreign Affairs Division; Uttarkumar Khatri, head of the Revenue Division; Thanaprasad Pangeny, head of the Administration Division; Tirtha Chiluwa, Deputy Director General of the Inland Revenue Department; and Sushila Aryal, Deputy Auditor General.

The committee is responsible for determining budget principles and priorities, facilitating the prioritization of ministry-level programs and projects, drafting the budget statement, and providing recommendations for policies and programs, according to the coordinator Nepal.

Meanwhile, the MoF has allocated financial limits for current, capital, and financial management expenditures, as well as for intergovernmental fiscal transfers at the ministerial, provincial, and local levels, in accordance with the decision of the Resource Committee of the National Plan.

As per the Financial Procedures and Accountability Act, the ministry must send budgetary ceilings and guidelines for budget formulation for 2025/26 by February 27.

Similarly, the ministry has provided equalization grant limits to the National Natural Resources and Fiscal Commission, complementary and special grant limits to the National Planning Commission, and conditional grant limits to the respective sectoral ministries.

Furthermore, the ministry has earmarked budget allocations for national pride projects and other key initiatives. The budget guidelines emphasize that budget proposals should focus on quality projects and activities within the allocated budget ceiling. When proposing new projects, priority must be given to ongoing ones, and only those with a confirmed investment framework should be considered. Additionally, the guidelines instruct that projects should not be duplicated and only those included in the Project Bank should be incorporated.