Finance Committee for fixed dates for budget process
	RUDRA PANGENI KATHMANDU, Oct 18 :The budget for the current fiscal year was approved only recently, some three months later than usual, as the opposition UCPN (Maoist) obstructed parliament for one-and-half months to press its political agenda.

 The record of over a decade shows similar obstructions by parties in the opposition in the presentation of the budget and its endorsement, regardless of the adverse effect this had on the country’s economic development. 



To address this chronic problem, the Finance Committee of Parliament has come up with the idea of bringing in a number of reforms, including instituting a fixed timetable for budget presentation and endorsement, and making these legally binding. 

Following a series of discussions with officials of the Ministry of Finance and the National Planning Commission, the parliamentary committee has decided to direct the government to fix the second week of May and the middle of June for tabling the budget along with its income and expenditure plan and for its endorsement, respectively. 

The committee has also directed the government to come up with bills or legal provisions incorporating fixed dates for budget presentation and endorsement by parliament. 
Likewise, in a bid to discourage public construction works that take place at the start of the monsoon in Ashadh, the committee also floated an idea of bringing the start of the fiscal year forward by a month to Ashadh 1 (mid-June). 

Joint-Secretary at the Ministry of Finance Baikuntha Aryal said they have long been demanding an early budget to provide ample time for necessary preparatory work. 
A significant portion of budget funds remains unspent while the bulk of the spending takes place in the dying days of the fiscal year, which coincide with the start of the monsoon rains. The result is substandard construction work. Data shows that 75 percent of the annual budget is spent in the final quarter. 

Likewise, the parliamentary committee has also asked the government to effect all transfers and deputations of civil servants during Ashadh so as to ensure the continuity of officials in the implementing agencies. 

Economist Bishwambher Pyakuryal welcomes the time-bound schedule but seeks proper implementation. Noting that a past finance minister had also endorsed the idea, he said it however remained limited to paper. “Parties should refrain from messing up economic issues with their so-called political consensus,” added Pyakuryal. 
The approach paper for the 13th periodic plan says that government spending on developmental works spurs overall economic growth if capital investment by government and the private sector is in the ratio of 35 and 65 percent respectively. 

Pyakuryal also suggested removing any legal and structural barriers to growth. 

Likewise, the parliamentary committee has suggested shortening discussions on the budget in parliament. Talking to Republica, Prakash Jwala, chairman of the committee, said they have sought time with Finance Minister Ram Sharan Mahat to hand over its directives. 

During discussions with lawmakers on the committee, Mahat had said that the fiscal year can be brought forward by a month to help avoid the rainy season. However, the four-month period for construction works from Falgun to Jestha (mid-February to mid-June) should not be split between separate fiscal years. About two-thirds of the government’s expenditure is on construction work and such work is implemented in those four months. 

The committee has also suggested strengthening the monitoring and evaluation of development projects as well as endorsing a reward and punishment system for the personnel of implementing agencies.