Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel is set to present the national budget for the fiscal year 2082/83 (2025/26) in a joint session of the Federal Parliament on Thursday, May 29 (Jestha 15).
Along with the budget speech, several related bills will also be tabled in Parliament, including the Appropriation Bill, the Finance Bill, the Vote on Account Bill, the Debt and Guarantee Bill, and the National Debt Collection Bill.
But the budget is not prepared overnight. The process begins nearly six months before the fiscal year ends, with active roles played by the National Planning Commission (NPC), the Ministry of Finance, and the National Natural Resources and Fiscal Commission.
Multi-step preparation process
According to the Economic Procedures and Financial Accountability Act, 2076 BS, the NPC is required to draft a Medium-Term Expenditure Framework (MTEF) for the next three fiscal years based on periodic national plans.
Each ministry must prepare and submit its own MTEF to the NPC and the Ministry of Finance, including projected expenditures over the next three years aligned with sectoral policies and periodic plans.
Revenue projection and expenditure ceiling by late January
In coordination with the Finance Ministry, the NPC must estimate revenue sources and expenditure ceilings for the next three years by the end of Magh (mid-February). Previously, this deadline was mid-Magh, but it was extended through an amendment to the Act.
A National Resource Estimation Committee, coordinated by the Vice Chair of the NPC, is responsible for projecting total national resources at the federal, provincial, and local levels based on investment needs and financial requirements outlined in periodic plans. The committee must submit its estimates to the Finance Minister by Falgun 7 (mid-February).
By the same deadline, ministries must also propose projects and programs—along with required funding—based on national pride projects, budget ceilings, and multi-year resource commitments.
Budget guidelines to Ministries by mid-February
The Ministry of Finance must then prepare and distribute budget ceilings and guidelines to other ministries and central bodies by Falgun 15 (late February).
Based on these guidelines and the prescribed format, ministries are required to draft their budget proposals—complete with policies and programs for the upcoming fiscal year and projections for the following two years—and submit them to the NPC and Finance Ministry.
The proposals must include estimated expenses, expected revenues, and any liabilities generated for the upcoming and subsequent fiscal years.
Finance Ministry reviews and finalises
After receiving all proposals, the Ministry of Finance conducts a comprehensive evaluation, including revisions and prioritisation of programs and allocations. It has the authority to make additions, reductions, or amendments to the submitted proposals.
Budget principles and priorities presented in advance
At least 15 days before the Appropriation Bill is presented, the Finance Minister must submit the government’s budgetary principles and program priorities to the Federal Parliament.
Lawmakers are allowed to provide suggestions on these priorities within seven days, and the Finance Ministry may also seek input from stakeholders and experts during this period.
Budget Day: Jestha 15 (May 29)
On Jestha 15, the Finance Minister presents the full revenue and expenditure estimates, supported by detailed breakdowns including the medium-term expenditure framework, last year’s financial performance, and program-wise spending allocations.
Prior to this, the Economic Survey of the current fiscal year must also be presented in Parliament, as required by law.
All budget-related bills must be passed before the start of the new fiscal year on Shrawan 1 (mid-July), when the budget officially comes into effect.
