12 Baisakh, Hetauda – The Bagmati Province government has introduced a new budget preparation directive aimed at resolving the long-standing issues of unfinished projects and cost overruns. The Ministry of Economic Affairs and Planning, now preparing the budget for the upcoming fiscal year, has released the new Annual Project Proposal and Selection Directive, 2083.
The directive clearly sets time limits for the completion of new infrastructure projects based on their cost. Economic Affairs Minister Prabhat Tamang formulated this directive exercising the authority under Rule 120 of the Provincial Financial Procedure Regulations, 2076. Minister Tamang emphasized that the directive is essential to ensure timely and systematic budgeting and program formulation.
Henceforth, adherence to the standards outlined in the directive will be mandatory when submitting budget proposals. Starting from the upcoming fiscal year, Bagmati Province will enforce maximum completion periods for new infrastructure projects according to their costs, ensuring all projects are completed within five years.
According to Article 4 of the directive, projects costing up to NPR 10 crore must be completed within two fiscal years. Minister Tamang stated that projects with costs ranging from NPR 10 crore to NPR 20 crore should be completed within three years, those between NPR 20 crore and NPR 50 crore within four years, and any projects exceeding NPR 50 crore must be finalized within five years. He highlighted that this rule is designed to control prolonged incomplete projects, reduce cost inflations, and ensure effective utilization of public resources.
