Nepal | May 26, 2020

Discussion on budget for next fiscal begins

MoF gearing up to do away with provision requiring reapproval of programmes green-lighted by LMBIS

Pushpa Raj Acharya
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Kathmandu, March 6

The National Planning Commission (NPC) and Ministry of Finance (MoF) held a discussion with various ministries to propose only implementable and effective programmes for next fiscal’s budget considering weak performance in implementing budget since last few years.

Owing to lack of effective utilisation of resources allocated under the development budget related to physical works and productive capacity enhancement, the country has been witnessing retarded growth and failing to address structural problems like low productivity, huge trade imbalance, lack of employment opportunities, among others.

During the discussions with stakeholder ministries held today, the MoF has asked the former to submit proposed programmes through Line Ministry Budget Information System (LMBIS). Through the web-based LMBIS system, the ministries have been asked to submit the procurement plans as well. Based on the submissions, the NPC and MoF will organise a series of discussion with each ministry regarding each project.

“Thereafter, we will allocate resources only for projects that have completed the ground works for implementation like drawing, designs, detailed project report, guidelines and other prerequisites to implement the particular project,” said Madhu Kumar Marasini, chief of the Budget Division under MoF.

As per MoF, it has been preparing to shorten the procedural steps for approval of central-level projects. “On the basis of Financial Procedure Rules 2007, NPC has been approving the central-level projects but with the LMBIS already in place, there is no rational for requiring the programmes to be approved again,” said Marasini, adding, “We will include the provision in Appropriation Bill of next fiscal stating programmes and procurement plans of central projects that have been green-lighted through LMBIS would not need to be approved again.”

This will finally skip the reapproval process from the NPC because all the programmes in LMBIS are finalised from the tripartite meeting among NPC, concerned ministries and MoF.

MoF has asked the ministries to propose the projects and programmes based on the given budget ceiling for next fiscal. The resource committee led by vice chairman of NPC has given ceiling of Rs 1,156.04 billion for next fiscal. This ceiling can vary slightly if government announces another two layer elections — province and central levels — and any programme for state restructuring, as per officials.

Top 10 budget recipient ministries

Ministry of Federal Affairs and Local Development Rs 129.34bn
Ministry of Education Rs 125.38bn
Ministry of Physical Infrastructure and Transport Rs 95.21bn
Ministry of Home Affairs                Rs 55.31bn
Ministry of Health              Rs 46.05bn
Ministry of Defence          Rs 45.24bn
Ministry of Agricultural Development       Rs 30.58bn
Ministry of Irrigation         Rs 29.61bn
Ministry of Urban Development                 Rs 27.92bn
Ministry of Water Supply and Sanitation                  Rs 26.70bn
  Source: NPC


A version of this article appears in print on March 07, 2017 of The Himalayan Times.

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