Ministry of Finance initiates budget preparation for FY 2025/26 with detailed timeline

KATHMANDU: The Ministry of Finance has prepared a budget calendar and begun the process of drafting the budget for the upcoming fiscal year 2082/83 . According to spokesperson Shyam Prasad Bhandari, the National Resource Estimation Committee (NREC) has provided a budget ceiling of approximately NPR 19 trillion , within which the budget preparation process is advancing.

“The budget calendar was introduced through an ordinance amending the Financial Procedure and Fiscal Responsibility Act. Work is progressing as per the provisions in this calendar,” Bhandari stated. “The NREC has finalized the budget ceiling, and all thematic ministries have also been allocated their respective ceilings.”

Key Steps in Budget Preparation

Submission of Proposals by Ministries:

All ministries have received guidelines on the budget ceiling and translation framework.

Ministries must submit detailed proposals, including policies, programs, and expected outcomes, to the Ministry of Finance and the National Planning Commission between Chaitra 1 and Chaitra 20 .

Public Consultation and Feedback:

A public consultation process will be conducted to gather suggestions on budget priorities. This will run from Chaitra 15 to Baisakh 10, 2082 .

Discussions on Policies and Programs:

Discussions on budget policies and programs will take place at the National Planning Commission from Chaitra 16 to Chaitra 22 .

Budget program discussions with ministries will occur from Chaitra 24 to Baisakh 15 .

Inter-Governmental Finance Council Meeting:

An inter-governmental finance council meeting will be held by Chaitra 28 to discuss the objectives, priorities, and key programs of the budget.

Regional discussions with provincial stakeholders on federal conditional grants will also take place during this period.

Consultations with Stakeholders:

Discussions with political parties, former finance ministers, governors, secretaries, economists, and experts will be held from Chaitra 26 to Baisakh 25 .

Drafting and Finalization of Investment Bill:

The principles and priorities of the investment bill will be finalized by Baisakh 10 , and it will be submitted to both houses of the Federal Parliament by Baisakh 15 .

Timeline for Budget Presentation
Revenue Consultation Report: The Revenue Consultation Committee will submit its report to the Finance Minister by Jestha 1 .

First Draft of Budget Speech: By this time, the first draft of the budget speech will also be ready.

Budget Briefing to President: The Finance Minister will present the budget briefing to the President on Jestha 10 .

Final Approval: The final version of the budget statement will be approved by Jestha 13 and presented to the Cabinet and National Planning Commission on Jestha 14 .

Submission to Parliament: The Economic Bill, Appropriation Bill, National Debt Bill, and Loan and Guarantee Bill will be sent for printing on Jestha 14 .

Presentation in Parliament: The Economic Survey, institutional progress reports, and ministry updates will be presented to both houses of the Federal Parliament on Jestha 14 .

Joint Session Budget Presentation: The budget for fiscal year 2082/83 will be formally presented in a joint session of Parliament on Jestha 15 .

Formation of Committees
1. Budget Drafting Committee
A five-member budget drafting committee has been formed under the leadership of Sri Krishna Nepal, Chief of the Budget Division at the Ministry of Finance. Members of the committee include:

Dhaniram Sharma, Chief of the Foreign Affairs Division
Uttarakumar Khatiwada, Chief of the Revenue Division
Than Prasad Pangeni, Chief of the Administration Division
Tirtharaj Chiluwal, Director General of the Internal Revenue Department
Sushila Aryal, Deputy Comptroller General

2. Revenue Consultation Committee
A Revenue Consultation Committee has been established under the leadership of Revenue Secretary Dinesh Kumar Ghimire. This committee will provide recommendations on revenue policies to be implemented during the budget preparation for fiscal year 2082/83 .

The committee will explore strategies for enhancing revenue collection, including customs duties, value-added tax (VAT), income tax, excise duties, non-tax revenue, and measures to control revenue leakage.

Subcommittees Under the Revenue Consultation Committee
The Revenue Consultation Committee has formed seven subcommittees to address specific areas:

Internal Revenue Subcommittee
Customs Subcommittee
Industry, Commerce, and Export Promotion Subcommittee
Revenue Leakage Control and Asset Verification Subcommittee
Agriculture, Energy, and Tourism Subcommittee
Banking, Financial Institutions, Insurance, Cooperatives, and Capital Market Subcommittee
Non-Tax Revenue and Intergovernmental Revenue Management Subcommittee

Key Points:
Budget Ceiling: Approximately NPR 19 trillion set by the National Resource Estimation Committee.
Public Consultation: Suggestions for budget priorities will be collected from Chaitra 15 to Baisakh 10 .
Stakeholder Discussions: Political leaders, economists, and experts will provide input from Chaitra 26 to Baisakh 25 .
Parliamentary Submission: Budget-related bills will be submitted to both houses of Parliament by Jestha 15 .
Budget Presentation: The final budget for fiscal year 2082/83 will be presented in a joint parliamentary session on Jestha 15 .