Budget Preparation Process for Fiscal Year 2083–84 Moves Forward

Kathmandu: The budget preparation process for the upcoming fiscal year 2083–84 has formally begun. According to the National Planning Commission, the National Resource Estimation Committee has already started its work with the objective of identifying potential revenue sources and determining the expenditure ceiling.

As per Section 7 of the Economic Procedures and Financial Accountability Act, 2076, annual budget formulation requires the estimation of resources and the determination of an expenditure limit. In line with this provision, the National Planning Commission, in coordination with the Ministry of Finance, is required to make a preliminary estimate of the resources likely to be available and the possible expenditure ceiling for the next three years for the purpose of preparing the Medium-Term Expenditure Framework as well as the budget and programs for the upcoming fiscal year. This estimate must be completed by the end of Magh of the current fiscal year.

For this purpose, a National Resource Estimation Committee has been formed under the coordination of the Vice-Chairperson of the National Planning Commission. To support the committee, a technical committee has also been constituted and has begun preliminary work, according to Commission Secretary Ravilal Panth. He stated that meetings of the technical committee have already been held and, based on an analysis of macroeconomic indicators, necessary data and details have been requested from Nepal Rastra Bank, the National Statistics Office, the Ministry of Finance, and other relevant ministries to estimate available resources.

In accordance with the law, the National Resource Estimation Committee must complete the estimation of resources and the determination of the expenditure ceiling by the end of Magh and submit the related report to the Minister of Finance by Falgun 7 each year. Based on investment projections and financial requirements outlined in periodic plans, the committee is also mandated to estimate the total national resources for the federal, provincial, and local levels for the next three fiscal years.

While estimating resources, factors such as the economic situation of the previous fiscal year, macroeconomic indicators from the first six months of the current fiscal year, projected revenue for the upcoming year, development assistance, internal borrowing, and amounts likely to be deposited in the federal consolidated fund will be taken into account. Following the resource estimation, the expenditure ceiling will be determined by considering the Medium-Term Expenditure Framework of the current year.

The Act further stipulates that while setting the expenditure ceiling, mandatory obligations and outstanding payments based on declared commitments must be included, ensuring that decisions do not adversely affect overall macroeconomic stability. Meanwhile, the National Planning Commission has already invited proposals from provincial and local governments for plans and programs to be implemented under federal matching grants and special grants for the upcoming fiscal year. Provinces and local levels are required to submit such proposals by the end of Magh to qualify for these grant