Finance Secretary Clarifies Budget Finalization Process Amidst Media Speculation

Kathmandu. Finance Secretary Ghanashyam Upadhyay has given a detailed explanation to the members of parliament about the process of changing tax rates at the final stage of budget preparation. Speaking at a meeting of the Public Accounts Committee under the House of Representatives, he claimed that the activities taking place on the night of Jestha 14 are a regular and institutional part of the budget preparation process and that there will be no manipulation of any kind.

He clarified that due to the confidentiality and sensitivity of budget preparation, there is a technical compulsion to finalize the rates only at the last moment. According to Finance Secretary Upadhyay, as per the established budget process, the Finance Minister receives various options from the administration and technical team only after 12 midnight on Jestha 14.

He stated that the Finance Minister then makes the final decision on which revenue rates to approve from the received options. This process can continue until 2, 3, or 4 in the morning to finalize it. He also explained the technical reason why the budget is presented at 4 PM on Jestha 15 every year, instead of in the morning. His statement is that the printing and final preparation work continues until 10-11 AM on the day of budget presentation, making it impossible to present the budget in the morning.

Discussing the confidentiality and security of budget preparation, he told the committee, 'As part of the budget process, the Finance Minister receives various options from the administration only after 12 midnight on the 14th. After that, he makes the final decision on which rate or which revenue rate to approve. This process can continue until 2, 3, or 4 in the morning. For this very reason, the budget is presented at 4 PM every year, not at 11 AM on Jestha 15. The reason for presenting it at 4 PM is that the final preparation of the budget is ongoing until 10-11 AM. On that day, the Secretary, Joint Secretaries, and other officials of the Ministry of Finance stay at the ministry from the previous day and do not get to go home. Similarly, relevant officials from the Ministry of Law are also present there. Security arrangements by the police and army are in place at the printing department, and after the printing is completed there, the budget is delivered to parliament. Therefore, the opportunity to clarify these matters was obtained in the committee.'

He added, 'However, the news that has been circulating in the media like 'rates were changed overnight' or 'decision on vehicle imports was made overnight' is not true. This is a time-consuming and institutionally operated process. The system in the Ministry of Finance is very strong. Checks and balances are included in the system. I would also like to invite you to form a team and visit. I request you to come to the Customs Department and observe the process firsthand.'

Finance Secretary Upadhyay claimed that there is no truth in the news reported by some media outlets stating that 'tax rates were changed overnight' or 'a deal was made for vehicle imports.' He stated that the Secretary, Joint Secretaries, and other officials involved in budget preparation do not get to go home from the previous day and work until the finalization with a team including officials from the Ministry of Law confined to the ministry. He urged not to doubt the system, as the budget is only submitted to parliament after printing is completed at the printing department under the strict security of the Nepali Army and Nepal Police.

Asserting that the working system of the Ministry of Finance is completely transparent, institutional, and secure, Secretary Upadhyay requested the parliament and citizens to trust the official system of the state. He also extended an open invitation to the members of the parliamentary committee to visit the Customs Department themselves and observe the system and customs clearance process firsthand if they have any doubts.