Economic Procedures and Fiscal Responsibility Bill registered in Parliament

KATHMANDU: The government has registered a bill to amend the Economic Procedures and Financial Responsibility Act, 2076 BS in the Parliament.

The government has registered the bill in the Parliament to provide enough time for the discussions on the government’s policies and programs and the annual budget submission process, to manage the additional financial obligations owed to the government by public bodies outside the budget system and to make the provisions on reducing wasteful expenditures effective.

Finance Minister Bishnu Prasad Paudel has registered the bill in Parliament last Friday with the aim of regulating the operation, management and related economic activities of the Federal Reserve Fund and other government funds as well.

The decision of the Council of Ministers on July 1 had given approval to submit the bill to the Parliament. Last January, the government started the process of amending the act through an ordinance, but the ordinance could not be passed by the Parliament within the specified time.

A provision has been added in the bill that the province, local level and public bodies outside the budget system (extra-budgetary) shall be subject to the prevailing laws related to such level or body and keep accounts in accordance with the approval of the Comptroller General’s Office.

The National Planning Commission, in coordination with the Ministry of Finance, is going to amend the provision that the projection of the available resources and the limits of the expenditure that can be incurred in the next three years for the purpose of formulating the med-term expenditure structure and the budget and program of the next fiscal year must be completed by the 15th of January of the current fiscal year.

It is mentioned in the bill that the budget ceiling should be prepared by the end of mid-February.

Similarly, the bill states that the report on resource estimation and determination of the expenditure ceiling prepared by the National Resource Estimation Committee coordinated by the National Planning Commission’s vice-chairperson should be submitted before the finance minister around February 18.

“The guideline and outline related to budget formulation should be sent to the related ministries, commissions, secretariats or entities within Fagun 7 (around February 18) of the current fiscal year. The guideline and outline should mention the budget ceiling, the outline of the mid-term expenditure structure, including the necessary amount in line with multi-year resource guarantee of the national pride projects, for the formulation of the budget for the next three years and remaining within the resource and expenditure ceiling fixed by the Resource Estimation Committee,” reads the bill.

An amendment proposal has also been registered seeking to amend Clause 11 of the main Act. The provision of the finance minister presenting before the Federal Parliament the principles of the budget and programs, and the project or program priorities to be included in the Appropriation Bill at least 15 days before presenting the Bill, is being amended.

According to the provisions of the bill to amend the Economic Procedures and Financial Responsibility Act, the principles and priorities of the budget and programs should be presented before the Federal Parliament three months ahead. The Federal Parliament shall forward within the 15th of Chait any suggestion or directive or any topic to be included or removed on the principle and priorities of the government after completing deliberations in principle on it.

Similarly, the bill has also amended the provision on the deadline for ‘budget surrender’ to be made to the Ministry of Finance.