Finance Ministry issues budget implementation guidelines

By A Staff Reporter,Kathmandu, July 21: The Ministry of Finance has issued an 81-point budget implementation guidelines to all ministries, departments and agencies for the effective implementation of budget of the current fiscal year 2023/24. In order to achieve the goals and objectives set by the budget of the current fiscal year, it is stated in the guideline to focus on maximum utilisation of resources, frugality in expenditure, effectiveness and efficiency.

Likewise, the government has given instructions through guidelines for compliance with the existing laws and regulations, including the overall financial discipline. The Ministry of Finance has instructed to complete the preparatory work of annual plans and programmes in the budget of the current fiscal year at the earliest.

"In order to implement the programme included in the annual approved programme, if procedures, guidelines, standards need to be revised or a new design is required, it must be prepared and implemented by mid-July with the approval of the Ministry of Finance. The procedure should be placed on the website within seven days of its approval,” the guideline said.

After completing the preparation of the projects included in the approved annual programme, the annual procurement plan, detailed design and cost estimate, including the quarterly classification of the programme and project, should be prepared and approved by September, 17 this year and the bids should be called.

As per the guidelines, the bids will be evaluated and the contract agreement will have to be concluded by mid-November, and the work order will have to be given to start the work within 15 days of the contract agreement.

It is said that the budget amount of plans and programmes that have not progressed to the contract process by mid-November will be withheld.

It is mentioned in the guideline that by improving the existing system of requesting and approving resource consent, resource consent will not be granted for a maximum of four times the amount allocated for the project in the fiscal year in which consent is sought.

Similarly, in the case of projects other than of national pride, it is said that the period for completion of resource agreement will be three years at most.

"If there is no contract agreement within nine months from the date of granting the resource consent, the consent will be automatically cancelled. Out of the previously approved projects, whose bids have not been invited after nine months have been completed and the allocation has not been proposed in the budget of the concerned fiscal year, the resource consent will be cancelled," the budget implementation guideline said.

Similarly, as the Parliamentary Sector Infrastructure Development Programme and Production and Employment Creation Programme will be implemented by the relevant ministries according to the procedure, it is said to arrange the implementation arrangements accordingly.

It has been instructed through the budget implementation guideline not to proceed with the implementation process of programmes and projects that are not included in the approved programmes and budget allocated.

For the second quarter payment release, the physical progress should be 30 per cent and for the third quarter payment, the physical progress up to that period should be at least 50 per cent.

The projects and programmes under multi-year contracts will have to be implemented from the allocated budget.

In the case of long-term infrastructure projects, such as roads, bridges, dams, canals, and more than Rs. 50 million, when managing the contract for new projects, arrangements must be made for maintenance by the concerned builders for at least five years after the construction is completed.