Committee to draft budget for FY 2025/26 formed

Kathmandu, Feb. 28

The Ministry of Finance (MoF) has formed a Budget Drafting Committee for the upcoming fiscal year 2025/26.

Shri Krishna Nepal, head of the Budget Division, is the chair of the committee. Dhaniram Sharma, head of the International Economic Cooperation Coordination Division, Uttarkumar Khatri, head of the Revenue Division, Than Prasad Pangeni, head of the Administration Division, Tirtha Chiluwaal, Deputy Director General of the Inland Revenue Department, and Sushila Aryal, Deputy Auditor General are the members of the committee.

According to Nepal, the committee is responsible for determining the principles and priorities of the budget, facilitating the prioritisation of ministry-level projects and programmes, drafting the budget speech, and providing recommendations for policies and programmes for the upcoming year 2025/26.

Meanwhile, in line with the decision of the Resource Committee under the National Planning Commission, the MoF has allocated budgetary limits for recurrent, capital, and financial management, as well as intergovernmental fiscal transfers within the available resources. The allocation covers ministries at the federal level, provincial governments, and local authorities.

As per the Financial Procedures and Fiscal Responsibility Act, the budget ceiling and budget formulation guidelines for the upcoming fiscal year must be issued by Falgun 15 (February 27 for this year).

In this regard, the Ministry of Finance has provided the ceiling for equalisation grants to the National Natural Resources and Fiscal Commission, while the ceilings for matching and special grants have been provided to the NPC. Similarly, the ceilings for conditional grants have been sent to the respective line ministries.

The government has earmarked funds for national pride projects and other key initiatives. The budget guidelines emphasise the need to propose budgets within the prescribed limits, ensuring allocations are directed towards high-quality projects and activities.

New project proposals must prioritise ongoing projects, and only those with completed preparatory work and confirmed investment structures will be considered.

In addition, the  ministries have been urged to ensure that proposed projects are not duplicated and that only those included in the Project Bank are submitted for approval.

Published in The Rising Nepal daily on 1 March 2025.