The Ministry of Finance has issued guidelines for the implementation of the current fiscal year 2083/84 budget, mandating that the allocated budget must be fully spent by the end of the Falgun month. Any unspent budget must be returned to the Ministry of Finance by Chaitra 15. Additionally, if the same project is duplicated, only one implementation is allowed, as stated in the guidelines. Provinces and local levels are required to spend conditional grants within the designated sector and submit physical progress reports within the specified timeframe to the relevant office.
Kathmandu, 4 Shrawan – The allocated budget for the current fiscal year must be expended by the end of Falgun, according to the recently issued budget implementation guidelines for fiscal year 2083/84 by the Ministry of Finance. The ministry has stated that any budget not spent by Falgun must be returned by Chaitra 15.
The relevant budgetary programs and authorized spending as recorded in the Ministry’s Budget Information System will be disbursed by the respective treasury and accounting controller’s office. For annual approved programs, any unspent budget by the end of Falgun, or remaining amounts, must be returned to the Ministry of Finance by Chaitra 15.
In cases where duplicate entries of projects exist in the approved budget and program for 2083/84, only one project will be implemented. The duplicated projects will be put on hold and the budget returned to the Ministry of Finance.
Budget transfers or activity modifications may be made for projects operated in provinces or local levels using supplementary or special grants. Such changes must be sent to the Ministry of Finance with recommendations from the National Planning Commission, without affecting the sector or objectives.
Provinces and local governments must spend conditional grant funds solely on programs within the specified sector. Details of the program duration, procedures, estimated costs and work plans, monthly cash flow, along with revenue and expenditure estimates approved by the respective Provincial Assembly, Village Assembly, or Municipal Assembly, must be submitted to the relevant treasury and accounting office by the end of Shrawan.
Physical progress and expenditure reports on the financial transfer of conditional grant funds must be submitted to the relevant office by Mangsir 15, Chaitra 15, and Asar 15. Annual financial statements are to be made available to the respective office by the end of Shrawan of the following fiscal year.
For conditional grant programs inclusive of foreign aid, financial agreements and the project implementation directives are mandatory. Failure to comply will result in the donor agencies withholding reimbursement of expenses. All relevant documents must be provided to the concerned provinces and local levels. When aid is mobilized, reports must be submitted in a timely manner to the concerned ministry, the agency requesting reimbursements, and the treasury and accounting office.
According to the Appropriation Act 2083, if programs included in one level’s budget are operated by another administrative level, accounting and both internal and final audits must be conducted as per federal regulations. Procedures, directives, standards, or guidelines needed for programs that involve budget carryovers must be prepared by the end of Shrawan and posted on the website within seven days. Any additional financial liability will require prior approval from the Ministry of Finance.
Under the Appropriation Act 2083, temporary staffing required for approved annual project implementation must receive cabinet approval by the end of Shrawan. Procurement processes that create multi-year liabilities must fit within the medium-term expenditure framework. For foreign aid projects, procurement must proceed within the limits of aid agreements.
Until foreign loan or grant agreements become effective, allocated foreign-source funds and supplementary budget titles remain frozen. Payments can be made after financial agreements are effective and with Ministry of Finance approval. Prior to releasing budget from foreign sources, receipt of funds from these sources must be confirmed. New projects and programs can only begin expenditure after financial agreements become effective. If payment methods differ, they must be revised and submitted by the end of Shrawan.
Regular reimbursements must be requested per the reimbursement directives. Details demanded by project management offices must be submitted to the Office of the Auditor General. Loan reimbursement details on foreign debt must be provided to the Public Debt Management Office. If reimbursement procedures are delayed within the prescribed time, the next quarterly disbursement will be withheld.
Potential financial risks in project and program implementation must be assessed, with risk mitigation measures undertaken. To ensure effective implementation of major infrastructure and plans, a robust financial risk management system will be strengthened alongside improvements in capital expenditure.
