Nepal Government Initiates Budget Drafting Process for Fiscal Year 2082/83

Kathmandu. The government has officially commenced the budget drafting process for the upcoming fiscal year 2082/83. The Ministry of Finance has formed a dedicated budget drafting committee to formally advance the proceedings. 

Ministry of Finance spokesperson Tankaprasad Pandey stated that the committee has been tasked with drafting the budget statement and determining the principles and priorities of the budget.

'The process has begun with the formation of the budget drafting committee. The committee has been provided with a specific TOR and will now begin the drafting work,' he said. He noted that the process was slightly delayed due to the formation of the new government, but asserted that the committee will now work with urgency. 

Finance Secretary Ghanshyam Upadhyay mentioned that the budget preparation process moved forward following the formation of the post-election government and the assumption of office by the newly appointed Finance Minister Dr. Swarnim Wagle. He explained that after briefing the new Finance Minister, the ministry proceeded by forming a five-member committee. 

'There was some delay due to the formation of the new government after the election. But now that the new government is in place, the ministry has advanced the budget process,' he said. 

Although there is a provision to enter departmental budget programs and figures by Chaitra 15, the process had not started due to the need for a new government. However, a new government led by Balendra Shah (Balen) was formed on Chaitra 13 in accordance with the new mandate. 

With the new government in place, the budget drafting process for the upcoming year has been accelerated. While ministries and their subordinate bodies were required to enter budget programs and figures into the LMBIS by Chaitra 15, the system remained open due to the recent formation of the government.

It is customary for the Ministry of Finance to enter proposed budget programs and estimates into the Line Ministry Budget Information System (LMBIS) by Chaitra 15. The ministry indicated that since the drafting process has now begun, the LMBIS for budget programs and figures will soon be closed.

There is a constitutional requirement to present the budget on Jestha 15. According to this legal provision, the Ministry of Finance usually begins preparations in Falgun. However, the process for the upcoming fiscal year was delayed due to the House of Representatives election held on Falgun 21, as the winning party had to form the government and prepare the budget.

5-Member Committee Led by Uttarkumar Khatri to Draft the Budget
 
The responsibility of drafting the budget for the upcoming fiscal year 2083/84 has been assigned to a five-member team led by Uttarkumar Khatri, Chief of the Revenue Management Division. According to spokesperson Pandey, five officials from the Ministry of Finance have been tasked with this responsibility.

This committee is primarily responsible for preparing the draft of the budget statement and determining the principles and priorities of the budget. The committee includes heads of various divisions within the Ministry of Finance, including Dr. Suman Dahal (Budget and Program Division), Dr. Dhaniram Sharma (International Economic Cooperation Coordination Division), Mahesh Bhattarai (Economic Policy Analysis Division), and Sevantak Pokharel (Financial Federalism Coordination Division).

The committee will provide necessary suggestions for the annual policies and programs of the upcoming fiscal year and facilitate the prioritization of projects and programs to be implemented.
 
This team will also draft the principles and priorities of the Appropriation Bill to be presented in both houses of the Federal Parliament. The committee is also tasked with preparing and submitting the final draft of the budget statement to be presented by the Finance Minister in Parliament. 

Upcoming Budget to be Balanced and Transformative

The government is preparing to make the upcoming fiscal year's budget transformative, moving away from the piecemeal approach of the past.

Prime Minister Balendra Shah has consistently stated in discussions with lawmakers that the upcoming budget will be balanced and will address all sectors of the country equitably.

Based on the views expressed by Prime Minister Shah and Finance Minister Wagle, the upcoming budget is expected to be balanced and transformative, with a focus on both development and governance reform.

Upon assuming office, Finance Minister Dr. Wagle committed to making the budget transformative by restructuring the country's economic trajectory. He stated that the focus would be on economic growth, job creation, investment climate, and entrepreneurship development rather than fragmented projects. He emphasized the proper use of policy incentives and reduced over-regulation and control. 

He stated, 'The budget will address issues such as economic stagnation, difficulties in revenue collection, and the lack of credit for the private sector despite liquidity in banks.' He also mentioned that the budget would be prepared with awareness of external challenges such as geopolitical conditions, potential impacts on remittances, oil prices, and the availability of petroleum products.

Finance Minister Wagle stated that good governance, education, health, financial access, and social security would be top priorities in the budget. He also highlighted job creation, economic growth models, and connectivity (road networks, digital connectivity, energy, and air transport) as key focus areas.

Finance Minister Wagle has also announced plans to involve the diaspora in national development, proposing a policy based on the concept of 'Once a Nepali, Always a Nepali' to address the fact that one in three Nepalis lives abroad.
 
The government is committed to breaking old cultures and trends to bring a balanced and transformative budget. The government plans to resolve issues such as land acquisition, compensation, and administrative hurdles that delay large infrastructure projects, emphasizing the need to move forward without delays.

Budget Ceiling of 1.89 Trillion

In Falgun, the National Resource Estimation Committee provided the Ministry of Finance with a budget ceiling of 1.89 trillion for the upcoming fiscal year (2083/84). The committee estimates that only 367.1 billion will be spent as capital budget, which is 17.87 billion less than the allocation for the current fiscal year. 

The current budget has a ceiling of 755.24 billion, though the actual budget for the current fiscal year was 733.69 billion. Additionally, the limit for debt principal and interest payment (financial management) is set at 348 billion, while the limit for financial transfer is 419.15 billion.

Following the receipt of this ceiling, the Ministry of Finance has continued the budget preparation process. With the ministerial ceilings determined, ministries and their agencies have begun preparing budget programs and policies in the LMBIS.

With the budget process underway, the Ministry of Finance plans to hold discussions with other ministries regarding budget programs and headings until Baisakh 15.