Kathmandu. The process of preparing the budget for the coming fiscal year 2083/84 has begun. According to the National Planning Commission, the National Resource Estimation Committee has already started works to find potential sources for the budget for the coming fiscal year and determine the limit of expenditure.

Clause 7 of the Economic Procedures and Financial Responsibility Act, 2076 BS has a provision to determine the limit of resource estimates and expenditure while preparing the annual budget.

The Planning Commission, in coordination with the Ministry of Finance, has to make an estimate of the resources available in the next three years and the limit of expenditure to be made within mid-January of the current fiscal year for the purpose of formulating medium-term expenditure structure and budget and program for the coming fiscal year.

For this, there is a National Resource Estimates Committee under the coordination of the Deputy Chairman of the Planning Commission. Secretary of the Commission, Rabilal Pantha, said that preliminary works have been started by forming another technical committee to assist the committee.

“The technical committee has already held a meeting and the work has already started. “The data and details have been sought from the Nepal Rastra Bank, National Statistics Office, Ministry of Finance and other line ministries as it is necessary to estimate the resources by analyzing the macroeconomic indicators,” he said. The budget ceiling is submitted within the time specified by the law. ”

As per the Act, the National Resource Estimates Committee should determine the estimate of resources and the limit of expenditure by mid-January and submit its report to the Finance Minister by Falgun 7 every year.

The Resource Estimation Committee has to estimate the total national resources of the federal, provincial and local levels for the coming three fiscal years on the basis of investment and financial needs projected in the periodic plan. According to PSC Secretary Pantha, the 16th Five-Year Plan has been prepared and sent to the Council of Ministers.

While estimating the source, the source should be estimated objectively on the basis of the overall economic indicators of the last fiscal year and the six months of the fiscal year, the amount of revenue that might be available in the next fiscal year, development assistance and internal debt and the amount to be deposited in the federal reserve fund. Similarly, the Act has a provision to determine the expenditure limit taking into account the medium-term expenditure structure of the current year after estimating the source.

The Financial Procedures and Financial Responsibility Act include mandatory liabilities while determining the limit of expenditure and the amount to be paid as per the said commitments without adversely affecting the overall economic stability.

Before this, the Commission has sought proposals from the Provinces and Local Governments for the plans and programmes to be implemented under the federal complementary and special grants for the coming fiscal year. The proposal for receiving the supplementary and special grants to be provided by the federal government to the provinces and local levels has to be submitted by mid-February.