The principle objective of this paper is to comprehensively understand the budget formulation and implementation procedure in Nepal. By looking at the procedural aspects of budget formulation and implementation, the paper attempts to analyse the factors that have hindered the effective execution of national budgets.
The national budget is a good indication of the state’s commitment towards different social and economic areas, and has a direct impact on the economy of the country. Though the preparation of a budget and its implementation is driven by set processes that have been accepted as a norm internationally, there are numerous problems affecting it. The persistent presence of such problems in the budget making and implementing process has forcibly delayed the execution of national level programmes and projects that are devised to attain certain development goals. This implies that problems related to the budget cycle have direct implications on desired economic growth. Some of the major problems that have been identified are ambiguities surrounding project prioritization, lack of inter-agency communication, and management of funds. By resolving these problems, issues such as procedural delays and the lack of accountability could be mitigated.
A Description and Analysis of the Budget Formulation and Implementation Process in Nepal