Kathmandu: The Ministry of Finance has issued a 47-point implementation directive to all ministries, constitutional commissions and government agencies to ensure the effective execution of the Fiscal Year 2026/27 budget.
The directive, released on Monday, aims to accelerate budget implementation, improve capital expenditure, strengthen fiscal discipline and ensure government development targets are achieved within the fiscal year.
Focus on Timely Budget Execution
Under the directive, all government agencies have been instructed to implement approved programmes and budgets within the prescribed timeframe while ensuring the efficient and prudent use of public resources.
The ministry has directed ministries and departments to promptly update approved programmes and budget allocations in the Line Ministry Budget Information System (LMBIS) and prepare annual work plans and procurement schedules at the beginning of the fiscal year. Agencies have also been instructed to resolve implementation bottlenecks without delay.
Greater Emphasis on Capital Spending
To improve development spending, the directive requires government agencies to utilize allocated funds strictly for their intended purposes and avoid unnecessary or unproductive expenditure.
It also emphasizes conducting public procurement in a transparent, competitive and time-bound manner. Payments for development projects must be made based on actual work progress to enhance accountability and ensure timely project completion.
Strengthening Fiscal Discipline
The Finance Ministry has further instructed government bodies to strengthen revenue collection, improve internal control mechanisms and safeguard public assets.
The directive also calls for regular monitoring of development projects, periodic progress reviews and timely reporting to improve project management and overall budget execution.
Addressing Chronic Budget Implementation Challenges
According to the ministry, the new directive has been introduced to address persistent delays in budget implementation and the country’s historically weak capital expenditure performance.
Officials believe the measures will help improve spending efficiency, accelerate infrastructure development and ensure that government-funded projects are completed on schedule while maintaining transparency and fiscal responsibility.
