What is the budget for the coming fiscal year 2078/79 like?

Kathmandu. 

The Ministry of Finance and its subordinate bodies are busy preparing the budget for the coming Fiscal Year 2078/07.

The National Planning Commission has sent guidelines on budget formulation and structure to the concerned ministries and agencies to estimate the budget in the budget ceiling and structure and submit it to the Ministry of Finance. Accordingly, the departmental ministries have to prepare budgets to address the impact and impact of Covid 19.

Corona will affect most of the goals of the 15th Periodic Plan. In this case, the budget is being looked at with interest. According to the Planning Commission, the annual development program, budget and medium-term expenditure structure have to be formulated by giving priority to the areas / sub-regions affected by COVID-19 in order to create employment and speedy recovery of the economy.

Ensure budget for large projects

While preparing the budget for the coming year, the budget has to ensure national pride and transformational projects. The commission has asked to ensure budget limits for projects of pride, transformational projects, major programs and projects of national importance.

As provided in the Financial Procedure and Financial Accountability Act 2076, the existing programs, projects and proposed new projects will have to be included in the budget only after entering the National Project Bank.

The project bank filters whether there is any pre-preparation work. It has been stipulated that the projects funded by foreign aid at national, state level and now in the final stage of implementation should be completed from the federal budget.

Even to complete the unfinished project, budget has to be allocated with priority. The commission has also stipulated that a small budget should be kept for projects that have not been completed.

The commission has asked all government bodies not to set aside money for construction of new buildings and purchase of vehicles except the essential ones. It has been asked not to keep budget for foreign travel programs except for mandatory participation by representing the nation. The agencies have to disclose the purpose beyond keeping the amount in the current expenditure.

The government has added one more year to the five-year term of the National Reconstruction Authority which ended last December. The target is to complete the projects under NEA in the current Fiscal Year 2077/78. In case it cannot be completed in this way, those programs have to be handed over to the departmental ministry in the next year's budget.

Accordingly, the Ministries have to allocate budget for the projects / programs. Certain criteria have to be set while allocating budget for projects like integrated urban development, urban beautification and smart city.

The size of the budget

As per the Medium Term Expenditure Structure 077 / 78-079 / 80, the budget for the coming Fiscal Year 078/79 will be around Rs. 1.7 trillion. The projection is based on the current year's budget of Rs 1.47 trillion and economic growth estimates.

The government had projected an average economic growth of 7 percent in the current fiscal year. However, first-quarter data show that this goal will not be met. An official of the commission said that this year's budget ceiling has been prepared keeping close to the figures set by the medium-term expenditure structure.

The size of the budget for the coming fiscal year estimated by the medium term expenditure structure is Rs.1.69 trillion.