Development ministries will now be able to transfer the allocated budget in the first quarter as well. In the guidelines on budget implementation for the fiscal year 2083/84 issued by the Ministry of Finance on Monday, the ministry has been given the facility to transfer funds in the first quarter and last month (Asar) of the fiscal year within the legal framework and budget limits. 

In the last fiscal year, transfers were not allowed in the first quarter and Asar. The government has given the exemption to transfer funds in all quarters within the prescribed legal framework and limits to increase capital expenditure. The guidelines mention that the accounting officer should implement the arrangement for quarterly revision of the budget and activities included in the approved annual program. The guidelines mention that if there is a need to change the source while amending the transfer of funds or programs or activities or quarterly division, the approval of the Ministry of Finance should be obtained. 

Since many issues are mentioned in the Appropriation Act, there are few new issues in the guidelines, said Amrit Lamsal, Joint Secretary and Spokesperson of the Ministry of Finance. ‘The Financial Procedures and Fiscal Responsibility Act and Regulations have provided guidelines on many issues in terms of spending,’ he said, ‘Earlier, money transfers were not allowed in the first quarter. In the current guidelines, money transfers have also been provided in the first quarter and mid-Ashar to increase capital expenditure.’ He said that there have been complaints that new contracts could not be signed due to lack of budget in the first quarter, and arrangements have been made in the guidelines to resolve them. 

Lamsal said that many responsibilities regarding the budget have been given to the concerned ministry. According to the guidelines, the financial transfer in the form of conditional grants and included in the approved annual program will not change the scope and main objective of the annual program, and the thematic ministry will be able to amend the money transfers and activities on the recommendation of the concerned ministry of the province without changing the source. 

The government (Ministry of Finance), which spent only about 47 percent of the allocated amount on capital last year, has issued guidelines for the implementation of the budget for the upcoming fiscal year. Ministry spokesperson Lamsal said that arrangements have been made to transfer funds in the first quarter itself to increase capital expenditure. 

Most of the provisions in the guidelines are old. It is stated that if the budget allocated for the annual approved program is not spent by mid-Falgun or cannot be spent in the remaining period, such amount should be surrendered to the Ministry of Finance by 15 Chaitra 2083. Such a provision was also mentioned in the guidelines for the last fiscal year. 

The guidelines mention that if a new four-wheeler is to be purchased from the allocated budget, the consent of the Ministry of Finance should be obtained. The same issue is also mentioned in the guidelines for the fiscal year 2081/82. The guidelines mention that it is mandatory to obtain the consent of the Ministry of Finance for foreign trips. 

If there is a double entry in the LMBIS in the approved budget and program of the fiscal year 2083/84, the name or objective of any project/program activity is the same and only one project, program or activity is selected for implementation and the other duplicate projects/programs/activities should be withheld and the budget should be surrendered to the Ministry of Finance. 

‘If there is a need to transfer funds or amend activities for the implementation of projects or programs run at the provincial or local level from supplementary and special grants, the funds should be sent to the Ministry of Finance for transfer and amendment of authority on the recommendation of the National Planning Commission in a manner that does not adversely affect the scope and objectives of the program,’ the guidance states, ‘The provincial and local levels should implement the transfer of funds as conditional grants in such a way that they are spent only for the program or project in the subject area for which they were received.’ 

The local and provincial levels should make arrangements to submit the details of the physical progress and the amount spent of the financial transferred funds under conditional grants by 15 Mangsir 2083, 15 Chait and 15 Asar 2084 and the annual financial statement by mid-Shrawan of the next fiscal year to the concerned Treasury and Accounts Controller’s Office. 

According to the Appropriation Act, 2083, when implementing a program project included in the budget and program of one level from another level, it is stated that the account should be kept as per the prevailing federal law as the expenditure unit of the level to which the amount is allocated and an internal and final audit should be conducted. If any working procedures, guidelines, standards, directions or guidance are required, they should be prepared by mid-Shrawan 2083 and placed on the website within seven days of approval of such working procedures. 

The guidance also states that if the budget allocated for the specific program/project is not received from foreign sources, the budget will be released by the second quarter by reconciling the accounts with the sources of the Government of Nepal. 

Before disbursing the budget amount from foreign sources, arrangements should be made to ensure that the amount is received from that source. It is stated that the details of the repayment of foreign loans should be provided to the Public Debt Management Office. If the repayment process is not started within the stipulated time, the disbursement of the next quarter will be stopped, the guidance states. 

‘Project heads and accounting heads who do not request repayment on time will have to be taken action in accordance with the Financial Procedures and Financial Responsibility Act, 2076,’ the guidance states, ‘Before implementing the infrastructure-related project included in the ministerial budget information system, the concerned thematic ministry or agency must have completed the process of entry in the project bank.’ 

The guidance issued by the Ministry of Finance states that consultancy services should not be taken except in cases where it has been decided that it cannot be completed through the regular structure, and that the services of a supervision consultant should not be taken except in large and complex projects. The guidelines state that government agencies should prioritize the use of vacant government buildings for office operations and, if government-owned buildings are not available, arrange for renting houses with minimum infrastructure and facilities located away from the main business center or main roads.