HoR Endorses Proposal to Consider Economic Procedure and Fiscal Responsibility Bill

The House of Representatives (HoR) has endorsed a proposal to consider the Economic Procedure and Fiscal Responsibility (First Amendment) Bill, 2081 BS. The proposal, presented by Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel, was passed by a majority vote during today’s session.

Responding to lawmakers’ queries during theoretical discussions, Minister Paudel emphasized that the Bill aims to strengthen budget implementation, ensuring greater effectiveness and fiscal discipline. He acknowledged that while budget formulation has received significant attention, improving budget execution has been long overdue.

Paudel highlighted the challenge of covering general expenditures in the current fiscal year, with the budget relying on a 31% revenue target. He noted that approximately 1,800 projects had been selected for implementation this fiscal year, but ensuring their execution remains a significant challenge.

He assured lawmakers that the government is prioritizing high-impact projects while considering the role of development partners and Nepal’s needs. Additionally, he acknowledged the necessity of amending certain provisions of the Public Procurement Act to enhance efficiency in budget utilization.

Earlier, lawmakers raised concerns over issues such as rising revenue leakage, declining foreign aid, liquidity problems in the banking sector, a lack of systematization in economic policies, and the growing public debt, which now exceeds NPR 2,600 billion. They also stressed the need for increased capital expenditure at the local and provincial levels, prioritization of projects that boost the national economy, and the promotion of fiscal discipline.

Among those participating in the discussion were Dr. Amersh Kumar Singh, Devendra Paudel, Rajendra Kumar KC, Abdul Khan, Janardan Sharma, Hitaraj Pandey, Bimala Subedi, Juli Kumari Mahato, Madhav Sapkota, Shakti Bahadur Basnet, Guyanu Basnet Subedi, Prem Suwal, Saraj Ahmad Faruki, and Narayan Sharma.