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Lok Darshan Regmi
Joint Secretary
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Vision
To ensure effective national resource management through prudent
annual development plans and programs and to contain budget deficit
at desirable level
Mission
Help implement fiscal policies of Government of Nepal by designing
public expenditure plans in order to achieve sustainable and pro-poor
economic growth through stable, prudent and sustainable macroeconomic
environment.
Strategic Goals, Objectives and Activities
Strategic Goal 1: Achieve allocative efficiency of budget
Activities:
- Strengthen project screening and project appraisal capacity.
- Rationalize and right size regular expenditure.
- Curtail unnecessary and low return yielding projects and apply
economic rate of return in selecting projects wherever possible.
- Introduce performance-based allocation, Introduce multi year
funding system so that core projects do not go under funded.
- Complete mid-tern budget review on time so that optimal cash
management could be ensured.
- Establish a project bank to select and prioritize projects.
- Ensure adequate fund for Operation and Maintenance.
Expected outcome:
After allocating resource in such projects and activities that are
found to be economically viable, 'the value for money' could be
ensured. It would not only result in high returns to government
expenditure but also lead to the crowding in of private sector economic
activities.
Strategic Goal 2: Achieve operational efficiency of budget
Activities:
- Ensure timely presentation of the budget in order that budget
could be implemented immediately after the commencement of the
fiscal year.
- Timely release of budget to the field offices.
- Ensure timely disbursement of necessary counterpart fund.
Expected Outcome:
Ensure completion of the projects and activities within stipulated
time to avoid cost and time overruns
Strategic Goal 3: Help maintain macroeconomic stability
Activities:
- Integrate fiscal forecasting with other sectors of the economy
such as real sector, external sector and monetary sector with
adequate exercise in financial programming to ensure macroeconomic
consistency and stability.
- Maintain regular expenditure to six percent of Gross Domestic
Product by fiscal year 2074/2075 BS.
- Limit domestic borrowing to one percent of Gross Domestic
Product.
Expected Outcome:
Contain fiscal deficit to the desirable limit to maintain macro
economic stability.
Strategic goal 4: Standardize budget classification to
recurrent and capital expenditure
Activity:
- Redefine and reclassify regular and capital expenditure in
conformity with international standard.
Expected Outcome
Classification of budget will be simple and comprehensive. Easing
preparation of financial reports and National Accounts.
Strategic goal 5: Improve financial management information
system (FMIS):
Activity:
- Redesign expenditure reporting so that it could cater the
needs of various development partners,
- Maintain effective communication system with National Planning
Commission, line ministries, Financial Comptroller General Office
and Nepal Rastra Bank,
- Develop expenditure reporting in terms of output instead of
input.
Strategic goal 6: Discourage extra and non-budgetary practices.
Activities:
- Strengthen the capacity of line ministries to propose the
programmes within the parameter of budgetary ceiling.
- Reflect all direct payment and commodity aid under the budgetary
domain of the government.
Expected outcome:
Government fiscal operations will be more transparent and comprehensive
Strategic goal 7: Identify new avenues for effective
and efficient public service delivery mechanism
Activities:
- Initiate activities of contracting out of basic services such
as cleaning, sweeping, gardening, driving, security guarding,
outsourcing of some services cost effectively, management contract
in order to ensure the effective service delivery mechanism.
Expected output:
More effective and efficient public service delivery will be maintain
Strategic Goal 8: Establish linkage between authority
and accountability
Activities:
- Provide adequate budget to project managers and entrust them
with the power to adjust budgeted amount from one line item
to another.
- Develop proper mechanism for check and balance so that chances
for embezzlement are reduced.
- Strengthen fiscal rules and regulations so that transparency
is maintained.
Expected outcome:
It will increase incentives for efficient and effective use of fund,
transparent mode of procurement.
Strategic Goal 9: Ensure predictability (both within
the same year and from one year to the next) and transparency of
budget
Activities:
- Stop ad hoc financing of projects and activities
- Ensure that adequate funding will be available for the projects
or activities once they are carried out with proper study and
thoughtful calculations,
Expected outcome:
It will broaden planning horizon of line agencies and implementing
units from just one year to end of project or activity.
Strategic Goal 11: Discourage incentives to spend everything
in the budget early in the year in the case of regular expenditure
and in the last hour in the case of development expenditure.
Activities:
- Initiate zero base budgeting this will help to stop incremental
budgeting and give message to line agencies that last year's
expenditure is not going to serve as the starting point for
next year's budget discussion and allocation.
- Reduce across the board budget cut during the budget implementation
caused by the revenue shortfalls.
Expected outcome:
This would help ensure fiscal discipline
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© Budget and Programme Division of the Ministry of Finance, 2002
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