By By Elizabeth Ugbo
The Government of Nepal has amended financial procedures in Kathmandu to fix delayed payments for development projects. On Baisakh 7, the government issued new regulations through the Nepal Gazette. The move targets faster budget execution and improved cash flow. Finance Secretary Dr. Ghanshyam Upadhyaya confirmed immediate implementation.
What Changed in the Financial Regulations?
The government introduced the Financial Procedures and Financial Accountability (Third Amendment) Regulations, 2083. These changes update Rule 131 of the 2077 regulations.
Specifically, the amendment adds sub-rules (1a) and (1b). As a result, authority over capital fund reallocation has shifted.
Decentralisation of Financial Authority
Under the new rules, the Ministry of Finance Nepal can delegate fund reallocation powers. This authority now goes to the Accounting Officer, usually a ministry secretary or agency head.
Previously, even small reallocations needed central approval. Therefore, delays often lasted months. Now, ministries can act faster and process payments without waiting.
Faster Payments for Contractors
This reform directly benefits contractors. Many had completed projects but waited long for payment approvals.
Now, ministries can reallocate funds quickly. Consequently, contractors will receive payments on time. This change should also reduce project delays.
Accountability Measures Remain Strict
However, the policy does not allow misuse. Sub-rule (1b) ensures strict accountability.
The Accounting Officer must justify every decision. In addition, they bear full responsibility for fund reallocations. This ensures transparency while improving efficiency.
Economic Impact and Market Liquidity
The reform aims to boost capital expenditure. Increased spending should stimulate Nepal’s economy.
Moreover, better cash flow will improve market liquidity. As funds move faster, businesses can operate more smoothly.
In the long term, this policy could strengthen economic growth and project delivery.
Conclusion
Nepal’s financial reform marks a major shift in budget management. It reduces delays, empowers ministries, and ensures accountability. Most importantly, it supports contractors and strengthens the economy.
