As a longer budget endorsement process hindered the government’s efforts to spend more capital budget, the Finance Ministry has started preparations to present the budget for the next fiscal year a month ahead of the start of the new fiscal year.
There is a tradition of presenting the budget on the first day of the new fiscal year. It takes around three months to get the budget endorsed by the Parliament after the presentation. And, an additional time is required to award contracts of development projects. Hence, presenting the budget on first day of the fiscal year usually results in low capital expenditure.
Considering this fact, Finance Minister Ram Sharan Mahat has directed ministry officials to make preparations to present the budget by mid-June. He has already informed the Parliament about the government’s budget plan.
Budget Division Chief Baikuntha Aryal said the ministry is currently receiving proposals from different ministries. “Discussions on the new budget will start at the National Planning Commission (NPC) early next week,” said Aryal. “Consultations will start at Finance Ministry from mid-April.”
NPC has fixed the ceiling for next budget at Rs 596 billion. However, the budget
size usually exceeds the
ceiling due to some populist programmes the politicians incorporate.
In the last six years, awarding of development project contracts has been late either due to a delayed budget presentation or a delayed endorsement, resulting in low capital expenditure. Development expenditure has remained around 80 percent over the period.
Around 80 percent of the budget is spent in the second half of the fiscal year under the current budgetary system. And, almost 40-50 percent of the budget is spent in final month.
As of March 25, capital expenditure has stood at just Rs 20.6 billion, 24.22 percent of the allocation of Rs 85 billion. The budget’s mid-term review has revised expenditure target at Rs 71 billion.
Meanwhile, the Revenue Advisory Committee has formed a sub-committee to discuss revenue related issues. According to the ministry, nine sub-committees have been formed under the committee. The committee gives necessary suggestions to the finance minister before the budget presentation.
As the government failed to meet the revenue target in the first six months of this fiscal year, there is mounting pressure to introduce policies that help achieve the target.
Source
There is a tradition of presenting the budget on the first day of the new fiscal year. It takes around three months to get the budget endorsed by the Parliament after the presentation. And, an additional time is required to award contracts of development projects. Hence, presenting the budget on first day of the fiscal year usually results in low capital expenditure.
Considering this fact, Finance Minister Ram Sharan Mahat has directed ministry officials to make preparations to present the budget by mid-June. He has already informed the Parliament about the government’s budget plan.
Budget Division Chief Baikuntha Aryal said the ministry is currently receiving proposals from different ministries. “Discussions on the new budget will start at the National Planning Commission (NPC) early next week,” said Aryal. “Consultations will start at Finance Ministry from mid-April.”
NPC has fixed the ceiling for next budget at Rs 596 billion. However, the budget
size usually exceeds the
ceiling due to some populist programmes the politicians incorporate.
In the last six years, awarding of development project contracts has been late either due to a delayed budget presentation or a delayed endorsement, resulting in low capital expenditure. Development expenditure has remained around 80 percent over the period.
Around 80 percent of the budget is spent in the second half of the fiscal year under the current budgetary system. And, almost 40-50 percent of the budget is spent in final month.
As of March 25, capital expenditure has stood at just Rs 20.6 billion, 24.22 percent of the allocation of Rs 85 billion. The budget’s mid-term review has revised expenditure target at Rs 71 billion.
Meanwhile, the Revenue Advisory Committee has formed a sub-committee to discuss revenue related issues. According to the ministry, nine sub-committees have been formed under the committee. The committee gives necessary suggestions to the finance minister before the budget presentation.
As the government failed to meet the revenue target in the first six months of this fiscal year, there is mounting pressure to introduce policies that help achieve the target.
Source
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