2024-04-15 08:57:20
The Ministry of Finance has instructed the concerned Ministries/Departments not to propose bulk allocations in the budget proposal for the coming financial year 2024-2025.
According to the guidelines, in the case of allocation of money in the budget, the ministry/department is helpful in achieving the strategic objectives of the government, money should be allocated against specific activities and generally no kind of wholesale allocation can be proposed in the budget.
The finance department of the Ministry of Finance has instructed all the ministries/departments under the scope of the medium-term budget framework system to prepare a detailed budget estimate for the next financial year 2024-2025 and at the same time the projection for the next financial year 2025-2026 and 2026-2027. The proposed budget proposal has been directed to be submitted to the Budget Division (1 and 2) of the Finance Department, Planning Commission’s Operations Department, General Economy Department and related departments by April 29.
It has been said that in the preparation of the second phase budget, all ministries/departments and other institutions should make detailed budget estimates and projections based on the decision of the tripartite (Finance Department-Planning Commission-Relevant Ministries/Departments and Institutions) meeting in the light of revenue and receipt targets and expenditure limits. To be rescheduled.
It is said that the budget framework prepared by all the ministries/departments and other institutions has already been reviewed in the tripartite meeting held between the finance department, planning commission and the concerned ministries/departments and other institutions and in the light of the observations of that meeting, the work of formulating an agreed budget framework is underway. .
According to the instructions, the operational and development expenditure estimate for the fiscal year 2024-2025 should be prepared in such a way that it is feasible within the budget approved by the Budget Management Committee of the Ministries/Departments and Institutions. The cost limit which has been fixed based on the discussion in the tripartite meeting is the maximum cost limit.
In the directive, the Ministries/Departments have been asked to follow four principles in the detailed budget estimates for the next financial year 2024-2025. These are – Ministries/Departments and other institutions that have strategic objectives outlined in the Medium Term Budget Framework and the Eighth Five Year Plan (2020-2025). The second vision plan (2021-2041), election manifesto 2024, delta plan 2100 and the policies and priorities of the government included in the Ministry/Department are able to manage the activities and achieve the medium term targets. Various Ministries/Departments and other institutions are able to increase the allocation for poverty alleviation, women and children development, climate change support activities in line with the government’s basic policy documents and increase the quality and quantity of services provided to poor people and women and children development. To maintain the consistency of the increase in operational and development expenditure with the GDP growth, so that the continuity of the current activities of the concerned ministries/departments and other institutions can be maintained. It is possible to ensure optimum utilization of budget allocations of Ministries/Departments and other institutions.
It has been said that project-wise allocation can be reviewed and re-fixed in necessary cases based on the criteria set in the tripartite meeting in preparation of annual development program (ADP) estimates/projections. However, in this case, the total ADP expenditure limit provided for the concerned Ministries/Departments and other institutions cannot be exceeded in any way. Expenditure provided includes expenditure on project assistance (DPA/RPA), cash foreign exchange etc. In this case the project estimate/projection should be prepared considering the cost of project aid, cash foreign exchange etc. For this reason, no money will be allocated in excess of the expenditure limit.
Also, no allocation can be proposed for any unauthorized project or scheme. On the other hand, allocations for all approved projects must be kept in the projection. The Planning Commission will examine the proposals of the concerned Ministries/Departments and other institutions regarding the inclusion of new projects in the ADP in the next financial year 2024-2025 and take action according to the conventional rules.
In determining the allocation of autonomous organizations run on government grants, the respective organization’s own income and sources of income for the current financial year should be reviewed. Estimated and projected income agreed in the tripartite meeting should be shown in the respective financial year. Budget estimate and projection should be prepared on the basis of determining the expenditure limit/government grant amount for the concerned organization excluding own income money.