Economic Procedure and Financial Accountability Act, 2019

9. Budget Proposal and Discussion: (1) The Accounting Officer shall, subject to the budget ceiling and guidance received pursuant to Section 8, prepare a budget proposal including policies and programs for the coming year for themselves and their subordinate offices or bodies in the Line Ministry Budget Information System (LMBBIS) and send it to the Planning Commission and the Ministry of Finance within the time specified in the budget ceiling and guidance.

(2) When making the budget proposal pursuant to sub-section (1), the following shall be done:-
(a) Prepare the budget proposal based on the functions assigned to the concerned Ministry according to the Government of Nepal (Allocation of Business) Rules, existing government policies, and the objectives, policies and programs specified by the periodic plan,
(b) Consider the Medium-Term Expenditure Structure prepared pursuant to Section 6, determine the projects or programs to be implemented accordingly and the activities under them, the estimated cost based on the prescribed expenditure norms, and the source to bear such cost,
(c) Project expenditure and resources for the budget estimate of the coming fiscal year and the subsequent two fiscal years, including liabilities created,
(d) Propose the amount to be paid in the coming year out of liabilities arising from multi-year procurement and special circumstances, and the amount remaining unpaid from previous years,
(e) Prepare the budget proposal after cost-benefit analysis of programs that help achieve sectoral targets and objectives of the periodic plan,
(f) Propose amounts for projects entered into the Project Bank,
(g) Include the financial and physical progress statement of the last fiscal year and up to six months of the current fiscal year.

(3) Amended by the first amendment.(3) The Planning Commission shall discuss the proposed budget and programs received pursuant to sub-section (2) regarding sectoral targets and achievements, feasibility study report, environmental study, detailed study, norms, drawing and design, project approval documents, land acquisition, project implementation schedule, procurement master plan and annual procurement plan, and expected results of the project, in the presence of the Accounting Officer or the officer designated by them, and submit a report thereof to the Minister of Finance.

(4) The Ministry of Finance shall, in the presence of the Accounting Officer or the officer designated by them, discuss the cash flow plan, basis of revenue estimation, timing of revenue receipt, contribution to revenue flow, source-wise, expenditure heading-wise and activity-wise matters, in addition to the report pursuant to sub-section (3).

(5) There shall be a Budget Committee under the chairpersonship of the Accounting Officer or an officer designated by them to coordinate work related to program and budget formulation under a Ministry or Body and to determine expenditure norms.

(6) The composition, functions, duties and procedures of the Budget Committee pursuant to sub-section (5) shall be as prescribed.

(7) Other procedures and time limits relating to budget formulation shall be as prescribed.