Finance Ministry issues 81-point guideline for budget implementation

Kathmandu / July 20 : The Ministry of Finance has issued an 81-point guideline to all the ministries, departments and line agencies for the effective implementation of the budget for the fiscal year 2080/081 BS.

The guideline focuses on maximum utilization of resources, becoming economical on expenses and ensuring effectiveness and efficiency. Likewise, the Ministry has directed to maintain fiscal discipline.

The guideline has ordered the officials and stakeholders to complete the preparatory jobs for implementation of the annual plans and programmes.

Furthermore, the Ministry has asked the government institutions to formulate new procedures, directives and standards within a month if they were to seek approval from the Ministry. Such approved procedures should be updated in the agencies’ website within a week.

The government institutions should call the tenders within the first three months of the fiscal year by preparing the annual procurement plan, detailed design and cost estimation.

The contract agreement should be done by mid-November and commence the job within 15 days of the contract agreement, the Ministry stated.

Likewise, the agreement would be automatically scrapped if the contract agreement was not carried out within nine months after the assurance for resources. This move shall come into operation to the projects of the last fiscal year as well.

As the budget implementation guidelines state, the source agreement will be scraped for those projects which have not yet gone into bidding despite the completion of nine months of the agreement and have not been proposed for appropriations in the current fiscal year budget.

Likewise, the implementation of Parliamentary Constituency Infrastructure Development Programme and the Production and Employment Generation Programme are to take place by the thematic committees and implementation provisions are recommended accordingly.

Through the guidelines, the Ministry directs for the implementation of ‘reward’ and ‘punishment’ culture in the construction business. Construction companies are mandated to take permission in writing from the respective project chief if they need to seek services from the entire and specific works via an auxiliary contract.

The guidelines insist on the development of culture holding project chief and construction companies responsible for timely and quality delivery.

Auxiliary contract has been discouraged in most essential case.

Likewise, projects worth over Rs 100 million have been recommended for undergoing construction quality test by the National Vigilance Centre.

The implementation has not been recommended in case of those programmes and projects not endorsed by the budget.

Likewise, introduction of any programme in the mid of the budget has not be recommended. The payments have been suggested only on the basis of physical progress and quality of the projects.

For the second quarterly budget release, there should be 30 percent work progress, while for third quarterly release, there must be at least 50 percent physical progress.

Environment impact assessment and preliminary environment test should be carried out within the fixed timeframe for facilitating the project implementation.

The multi-year contracted projects should be implemented from the allocated budget itself.

Organization and management survey should be carried out before mid-December so that the existing organization of public administration would be made smooth.

The Finance Ministry has asked budget implementers to maintain utmost frugality in administrative expenses including allowance, training, seminar, service fee, visit, stationery, maintenance, fuel, electricity tariff, rent etc. RSS