FinMin issues guideline for budget implementation

KATHMANDU: Ministry of Finance (MoF) has issued a detailed guideline to all ministries, departments, commissions and agencies of provincial and local governments for the effective implementation of the budget for current fiscal year.

The MoF has asked all government agencies to prepare the required procedures, directives, guidelines and standards for budget implementation by mid‑August.

The guideline, issued on July 17, states that procedures and directives for budget implementation should be published on the websites of the concerned bodies within a week.

It specifies that prior MoF approval is mandatory where procedures and directives would create a financial liability.

According to the MoF, temporary posts required for the operation of approved projects and programmes should be endorsed by the Council of Ministers by mid‑August after approval from the MoF.

The MoF has instructed the bodies concerned to run their programmes within the cap of the allocated budget and not to carry out any programme that would create additional financial burden without the ministry’s approval.

Furthermore, the MoF has directed government agencies not to engage consulting services except for tasks that cannot be performed by regular ministry staff. Supervision consultants will not be hired except for mega and challenging projects.

Public expenditure should be made meaningful and maximum austerity measures applied to drinking water, power tariffs, communications tariffs, fuel, official materials, visits, training, seminars and other administrative costs.

Purchase of four‑wheelers is discouraged and prior approval from the MoF is mandatory for foreign visits. Government institutions should prioritise government buildings for office operations; buildings with minimum facilities may be rented outside major commercial centres only if government buildings are not available.

The guideline states that government entities should inform the Ministry of Finance one week in advance of any payment exceeding Rs 1 billion.