Panel formed to draft regulation to maintain budget discipline

Kathmandu, July 30

The Ministry of Finance (MoF) has formed a task force to draft legislation aimed at strengthening budgetary discipline.

The task force is headed by Mahesh Baral, Chief of the Financial Federalism Coordination Division at the Ministry. Members of the task force include Under-Secretaries from the Budget Division and the Law and Decision Division of the MoF, and former Joint Secretary Nirmal Hari Adhikari, who joins as a subject-matter expert. The role of Member Secretary is held by an Under-Secretary from the Financial Federalism Division, the MoF informed in a statement on Wednesday.

Clause 359 of the budget for the current fiscal year 2025/26 outlines objectives such as enhancing the efficiency of allocations to improve the effectiveness of public finance, increasing public expenditure outcomes through budget discipline, and strengthening cash flow management to maintain a balanced federal consolidated fund.

It also mentions the productive and sustainable utilisation of public debt and the implementation of the National Financial Management Reform Strategy.

Furthermore, Clause 371 of the budget outlines the need to draft legislation to strengthen budget discipline at the federal, provincial, and local levels, in line with constitutional provisions. It also calls for the formulation of public expenditure standards applicable across all three tiers of government.

The MoF has formed the task force to implement these budget provisions.

Published in The Rising Nepal daily on 31 July 2025.