Ministry of Finance Shifts Focus from Micro-management to Policy and Fiscal Discipline
Summary
The Ministry of Finance in Nepal has shifted from micro-managing budgets to focusing on policy and fiscal discipline, delegating more authority to ministries to manage their budgets within existing laws and emphasizing risk management and timely capital expenditure.
Key Points
- The Ministry of Finance has reduced its micro-management role, shifting focus to overall fiscal policy and discipline.
- The budget implementation guideline was shortened from 18 pages with 95 points to 7 pages with 37 points, delegating more authority to ministries and departmental heads.
- Reallocation and program revision policies were loosened, allowing ministries more control over minor budget adjustments except for mandatory liability headings.
- The new guidelines emphasize risk management, adherence to existing fiscal laws, and aim to improve the timeliness and quality of capital expenditure.
- Ministries no longer need Ministry of Finance approval for regular budgeted activities but must get prior approval for new programs or additional liabilities.
