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Pre-Budget Discussion in Parliament Faces Risk of Becoming Mere Formality Again

Summary: Although the government is constitutionally required to present the budget for the upcoming fiscal year on Jestha 15 in Parliament, the pre-budget discussion has not taken place on time. Legal provisions mandate submitting the pre-budget discussion proposal 15 days in advance, but opposition parties claim the government has not allotted sufficient time. Lawmakers from the CPN-UML have urged the government to convene a parliamentary session immediately to avoid reducing the pre-budget discussion to a mere ritual.

Kathmandu, 19 Baisakh – The government is preparing to present the budget for the next fiscal year, yet no parliamentary discussion on the budget has been held so far. According to the constitution, the budget must be presented on Jestha 15. Article 119, Subsection 3 explicitly states that the Finance Minister shall present the revenue and expenditure estimates to the Federal Parliament by the fifteenth day of Jestha each year.

Before introducing the budget, the government usually presents a policy and program. More importantly, parliamentary practice and legal provisions require a pre-budget discussion in Parliament before the policy and program. According to Ekram Giri, Joint Secretary and spokesperson of the Federal Parliamentary Secretariat, the Finance Minister must submit a proposal for the pre-budget discussion in Parliament at least 15 days before the budget presentation. “As per prevailing law, the proposal must be submitted 15 days in advance, and Parliament must send suggestions seven days before,” said Deputy Secretary Giri.

The Public Financial Procedure and Financial Accountability Act 2076 contains such legal requirements. However, the Finance Minister often brings the pre-budget discussion proposal to Parliament at the last minute, forcing the secretariat to rush consultations and send feedback hastily. Since this practice did not yield the desired results, the government led by Pushpa Kamal Dahal amended the act in Falgun 2080 to strengthen the pre-budget discussion process. Nonetheless, the subsequent government under KP Sharma Oli reverted the act to its previous version through an ordinance.

In line with the current law, the Finance Minister is expected to present the pre-budget discussion proposal 15 days before presenting the budget this year as well. However, time is becoming increasingly limited. The current government plans to submit the pre-budget discussion proposal during the last week of Baisakh and conduct discussions in the first week of Jestha to send suggestions. Meanwhile, opposition parties have expressed concern that the recommendations given may not be incorporated into the policy and program.

According to CPN-UML Chief Whip Yubaraj Dulal, pre-budget discussion is a process where the government informs Parliament about budget priorities and principles. “During the pre-budget discussion, lawmakers provide suggestions regarding policies, plans, and budgets based on the country’s needs. Subsequently, the government formulates policies, programs, and the budget,” Dulal said. He added that limited time for discussions likely limits the inclusion of suggestions, thereby reducing the process’s effectiveness.

“Whether the pre-budget discussion is merely a formality or held earnestly, the avenue for lawmakers’ suggestions to be heard is weakened. This undermines democratic processes,” he noted. “The government’s tendency is simply to present policies and programs in its own format and push them through with unnecessary majorities.”

CPN-UML lawmaker Rajendra Kumar Rai expressed concerns that if new parties continue the old practices and fail to improve governance, public disappointment will grow. “Though we are a new party, we have not demonstrated the ability to govern effectively,” he said. Rai emphasized that a lack of sufficient time prevents lawmakers from fully embracing the government’s policies and programs. “The government postponed the parliamentary session after calling for it urgently, which suggests that the discussion in Parliament is only meant to fulfill procedural requirements,” he added.

“The House was convened but then adjourned without sitting; such an event is unprecedented in Nepal’s history,” Rai remarked.

CPN-UML lawmaker Guruprasad Baral called on the government to immediately convene the Federal Parliament. “We are firm in demanding an immediate convening of Parliament. After that, the pre-budget discussion and presentation of policies and programs should take place with full debate,” he stated. However, Baral criticized the government for bypassing Parliament and continuing with its work unilaterally. “The government depends on ordinances and abandons rule of law, making parliamentary discussions ineffective. There is a risk that Parliament will become only a body to carry out formalities regarding the budget and other matters,” he warned.