KATHMANDU: The Ministry of Finance has issued the Budget Implementation Guidelines to make the implementation of the fiscal year budget more systematic, transparent and effective.
The ministry issued the guidelines to all central government agencies, provincial governments and local levels by exercising authority under the Appropriation Act and the Financial Procedures and Fiscal Responsibility Act.
The main objective of the guidelines is to achieve budget targets, ensure economical and efficient spending, and maintain overall financial discipline.
According to the guidelines, if allocated funds for approved annual programmes remain unspent by the end of Falgun or are unlikely to be utilized within the remaining period, the concerned agencies must return the unused amount to the Ministry of Finance by March 29, 2027.
The ministry has also instructed agencies to retain only one budget entry if the same project or programme appears multiple times in the Line Ministry Budget Information System, while freezing the duplicate allocation and returning the excess budget.
Provincial and local governments have been directed to use conditional grant funds only for the specific programmes or projects for which they were allocated. They must submit physical progress and expenditure reports of conditional grants to the respective Treasury and Controller Office by November 1, March 29 and June 29.
The government has adopted a policy of reducing public expenditure and promoting austerity.
Under the new guidelines, prior approval from the Ministry of Finance will be mandatory for purchasing four-wheeled vehicles. Government officials must also obtain approval before undertaking foreign trips.
The guidelines prohibit hiring consultancy services for tasks that can be carried out through existing government structures and restrict the appointment of supervision consultants except for complex projects.
Government agencies have also been instructed to exercise maximum restraint in administrative expenses, including electricity, water, communication, fuel, maintenance and office supplies.
The guidelines further state that accounting responsible officers, including secretaries, will have the authority to transfer budgets from current expenditure headings to capital expenditure headings within the same grant category, as per the Financial Procedures and Fiscal Responsibility Act.
However, caution has been advised while transferring funds allocated for salaries, allowances, rations, medical treatment and social security-related expenses.
The ministry will regularly monitor budget implementation, with review meetings to be held every two months. It has also directed agencies to assess possible financial risks during project implementation and adopt measures to minimize them.
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