The Parliamentary Committee on Finance today directed the government to
modify its fiscal calendar and ensure the financial year begins from the
first day of Nepali month of Asar (mid-June) with effect from next
fiscal.
The parliamentary committee issued the instruction to ensure timely utilisation of budget allocated for development activities.
If this decision is implemented, the upcoming fiscal year will begin on June 16, as against July 17, and end on June 14, 2016.One of the reasons for low utilisation of capital budget, according to government officials, is the compulsion to operate under a financial year which begins from Nepali month of Shrawan (mid-July).
Officials argue that monsoon begins soon after commencement of the fiscal year, when works related to development of physical infrastructure virtually come to a halt. Immediately after that, celebration of month-long festival of Dashain and Tihar begins, during which offices remain closed.
This means government does not make use of capital budget till the end of first quarter of every fiscal year.
The parliamentary committee believes capital spending will increase if the fiscal year begins a month ahead of the existing date.In the current fiscal, the government allocated Rs 116.75 billion for capital expenditure. But even after completion of eight months of the fiscal year, only 22.08 per cent of the fund had been utilised.
To ensure the annual budget is prepared on time, the parliamentary committee has also instructed the government to complete pre-budget discussion at the Parliament by April 28 and present annual policies and programmes for next fiscal within May 3. The Parliament should then approve the government’s annual policies and programmes within mid-May.
Based on this, the government should table Appropriation Bill, Financial Bill and Bill to Raise Public Debt at the Parliament within the third week of May. The Parliament should endorse these Bills within mid-June.
Respective ministries should then prepare documents to begin public procurement process, issue tender notice and enter into various agreements. These works should be completed by mid-September, and procurement works and project implementation phase should begin right after.The parliamentary committee has also proposed that timeline for presentation of Bills related to budget and their endorsement be mentioned in an Act or Constitution.
Also, projects that cannot utilise budget till first eight months of every fiscal year should be identified and such funds should be transferred to other projects no later than mid-April, the committee has recommended.
source: the himalayan times,24 March 2015
LINK
The parliamentary committee issued the instruction to ensure timely utilisation of budget allocated for development activities.
If this decision is implemented, the upcoming fiscal year will begin on June 16, as against July 17, and end on June 14, 2016.One of the reasons for low utilisation of capital budget, according to government officials, is the compulsion to operate under a financial year which begins from Nepali month of Shrawan (mid-July).
Officials argue that monsoon begins soon after commencement of the fiscal year, when works related to development of physical infrastructure virtually come to a halt. Immediately after that, celebration of month-long festival of Dashain and Tihar begins, during which offices remain closed.
This means government does not make use of capital budget till the end of first quarter of every fiscal year.
The parliamentary committee believes capital spending will increase if the fiscal year begins a month ahead of the existing date.In the current fiscal, the government allocated Rs 116.75 billion for capital expenditure. But even after completion of eight months of the fiscal year, only 22.08 per cent of the fund had been utilised.
To ensure the annual budget is prepared on time, the parliamentary committee has also instructed the government to complete pre-budget discussion at the Parliament by April 28 and present annual policies and programmes for next fiscal within May 3. The Parliament should then approve the government’s annual policies and programmes within mid-May.
Based on this, the government should table Appropriation Bill, Financial Bill and Bill to Raise Public Debt at the Parliament within the third week of May. The Parliament should endorse these Bills within mid-June.
Respective ministries should then prepare documents to begin public procurement process, issue tender notice and enter into various agreements. These works should be completed by mid-September, and procurement works and project implementation phase should begin right after.The parliamentary committee has also proposed that timeline for presentation of Bills related to budget and their endorsement be mentioned in an Act or Constitution.
Also, projects that cannot utilise budget till first eight months of every fiscal year should be identified and such funds should be transferred to other projects no later than mid-April, the committee has recommended.
source: the himalayan times,24 March 2015
LINK
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