1. Preparation/Formulation/Estimate Process of Budget - National planning commission is responsible to set up the long term plans and programs of annual development budget of the government. Nepal Central Bank and Ministry of Finance estimate the revenue and expenditure for next year. Macroeconomic policy will be set up by organizing joint meeting between MoF, NPC and Central Bank. The budget documents contains data concerning actual budget of previous years, revised estimates of current years and estimated budget of coming fiscal year. The district level office has practice Bottom up planning in different districts and submits to the MoHP through various departments.
2. Screening Ministry of finance makes an analysis of the financial position of resources (Internal revenues and foreign assistance) and estimates expenditure. If the estimated expenditures are more than the receipts, MoF requests the ministers, departments and constitutional bodies for final budget discussion. There will be joint meeting between NPC, MoF and concerned ministry/constitutional bodies in NPC. The program manager should present logically and then after screening the budget for next years. The budget will be finalized by bargaining, negotiation and compromising. Priorities the budget on the basis of department of the program.
- 2) Budget Approval
- Intra mural approval system: The intra mural approval system, i.e. within the organization approval system. Two steps: firstly by the head of hospital and then by the head of institute.
- Extra mural approval system: The approving authority is the same for all government funded hospitals i.e. through joint Secretary, Health Secretary, and Health Minister. It is then presented in the Parliament and final approval is signed by Prime Minister who is the chairman of Planning Commission.
- 3. Sanction: Permission given by authorities to do something. By our constitution there will be joint sitting of parliaments an annual estimate including following:
- - An estimate of revenue
- - The money required to meet the charges on the consolidated fund.
- - The money required to meet the expenditure to be provided for an appropriation act
- The MoF presets the estimates of revenue and expenditure of Nepal government for the next fiscal years before joint sitting of parliament in the last week of Ashad of every year. Budget is discussed, item wise and sector wise by the members of parliament. After discussion, the budgets are passed by the
- parliaments and sent to the President for his/her assent. Then after it would be eligible for implementation. The fiscal year starts from 1st Shrawan and ends at last day of Ashad. MoF prepares the estimated income and expenditure budget book (Red Book) for the coming year. Finance minister submit the budget in the parliament for its approval.
4) Budget allocation - Final approval for the budget is voted ,then allocated to organizations. Finance is sanctioned in installment based on hospital funding, management policy, performance, actual expenditure of last year and future plans.
- 5. Receipt of Budget or Implementation of Budget - According to our constitution, the budget cannot be implemented without the approval of the parliament. The following process had been adopted for the implementation of budget
- Provide authorized paper
- By checking out the authorized paper
- Approving the core and non-core program
- Process for budget release
- Guarantee the resources for priority 1 or core project.
- Release budget based on performance.
6) Budget monitoring - Budget monitoring is usually made by the budget reports. Budget monitoring committee comprising of representatives of each department, financial advisor
