Ministry of Finance initiates comprehensive budget system reform with four committees

January 9, 2024, 12:17:53 PM |

KATHMANDU: In a significant move towards enhancing fiscal efficiency, the Ministry of Finance has established four committees tasked with reforming and improving the existing budget system. Spearheaded by three under secretaries of the Budget and Program Division, these committees are set to provide valuable suggestions for the systematic enhancement of budgetary processes.

Finance Minister Dr. Prakash Sharan Mahat, during the budget announcement for the current fiscal year, expressed the ministry’s commitment to overhauling the budget system. The 57th point of the budget highlighted an intensive review of program and project rationale and needs, signaling a comprehensive restructuring in the upcoming fiscal year.

To implement this vision, the ministry formed a committee under the leadership of Under Secretary Purna Neupane. This committee will unify the responsibility of the budget information system and multi-year contracts, addressing the previous haphazard approval of multi-year contracts and ensuring clarity on associated liabilities.

Another committee, led by Central Budget Chief Jagdish Upadhyay, will focus on the systematic organization of fund transfers and disbursements from various sources. Its mandate includes controlling the disorderly spending of allocated budgets through careful examination and suggestion of effective measures.

In addition, the ministry has initiated efforts to streamline the Line Ministry Budget Information System (LMBIS) through a dedicated committee led by Upadhyaya. With over 800,000 active programs in the system, this committee will submit suggestions on reducing the program count for improved management.

Furthermore, a committee led by Under Secretary Tikaram Bhusal will delve into issues related to the improvement and security of both LMBIS and Provincial Line Ministry Budget Information System (PLMBIS). The aim is to provide recommendations on seamless interlinking with other government systems.

All four committees, established at the secretary level, have a deadline of mid-February to submit comprehensive reports with actionable suggestions. Ministry officials anticipate that these recommendations will serve as the foundation for creating regulations, procedures, and standards, ultimately leading to a more efficient and transparent budget system.

Fiscal Nepal |

Tuesday January 9, 2024, 12:17:53 PM |