KATHMANDU: The budget preparation process for the upcoming fiscal year 2026/27 has officially begun, with the National Planning Commission (NPC) initiating work to estimate revenue sources and determine expenditure ceilings.
According to the NPC, the National Revenue Estimation Committee has started preliminary work to identify potential resource sources and set spending limits for the next fiscal year. Section 7 of the Financial Procedure and Financial Accountability Act, 2076, mandates that the annual budget clearly outline estimated revenue sources and expenditure ceilings.
As per the legal provision, the NPC, in coordination with the Ministry of Finance, is required to prepare a preliminary estimate of available resources and possible expenditure limits for the next three fiscal years. This estimate forms the basis for drafting the Medium-Term Expenditure Framework as well as the budget and programmes for the coming fiscal year, and must be completed by the end of Magh of the current fiscal year.
The National Revenue Estimation Committee, coordinated by the NPC Vice-Chairperson, has been mobilised for this purpose. NPC Secretary Ravi Lal Panth said a separate technical committee has also been formed to support the process, and preliminary work is already underway.
“The technical committee has already met and started work. Since estimating resources requires an analysis of overall economic indicators, data and details have been requested from Nepal Rastra Bank, the National Statistics Office, the Ministry of Finance and other concerned ministries,” Panth said. He added that the committee is preparing for the meeting of the source estimation committee and that the budget ceiling will be presented within the timeframe specified by law.
Under the Act, the National Revenue Estimation Committee is required to finalise revenue estimates and expenditure limits by the end of Magh and submit its report to the Finance Minister by Falgun 7 each year.
The committee is also tasked with estimating total national resources for the next three fiscal years for federal, provincial and local governments, based on projected investment needs and financial requirements outlined in the periodic plan.
Meanwhile, NPC Secretary Panth said that the implementation action plan of the 16th Five-Year Plan, which is currently in effect, has been prepared and submitted to the Cabinet.
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