Budget calendar in disarray due to delays in law amendments

December 28, Kathmandu: The federal government’s budget formulation for fiscal year 2082/83 has been hindered by delays in amending relevant laws. The National Planning Commission (NPC) has postponed the solicitation of plans and programs for federal supplementary and special grants, as amendments to the work procedure have yet to be completed.

The Ministry of Finance is also uncertain about budget preparation due to the Financial Procedure and Fiscal Responsibility (First Amendment) Bill, 2081 being stalled in parliament. According to existing procedures, the NPC must publish a notice by mid-December to invite proposals from provinces and local levels for projects eligible for grants, with submissions due by mid-January.

After a meeting of the National Development Problem Solving Committee on November 15, the NPC announced a delay in seeking proposals to allow for amendments to the grant procedures. NPC Vice-Chair Prof. Dr. Shivaraj Adhikari noted that while proposal requests are delayed, the process will gain momentum under the revised procedures, which aim to ensure equitable distribution of grants.

Additionally, the government has not adequately discussed the principles and priorities of the budget. The ‘Financial Procedure and Fiscal Responsibility (First Amendment) Ordinance, 2080’ issued last January was meant to clarify budget timelines but was repealed after failing to pass in parliament. The newly registered ‘Financial Procedure and Responsibility (First Amendment) Bill, 2081’ is currently under consideration, leaving uncertainty about next year’s budget schedule.