KATHMANDU: The budget preparation process for the upcoming fiscal year 2026/27 has been initiated.

The National Planning Commission has stated that the National Revenue Estimation Committee has started working to find potential sources for the budget of the upcoming fiscal year and to determine the spending limits.

Section 7 of the Financial Procedure and Financial Accountability Act, 2076, stipulates that the annual budget must determine the estimated sources and the expenditure ceiling.

The Planning Commission, in coordination with the Ministry of Finance, is required to make a preliminary estimate of the resources available and the possible expenditure limit for the next three years for the purpose of drafting the medium-term expenditure framework and the budget and programme of the coming fiscal year by the end of Magh month of the current fiscal year.

There is the National Resource Estimation Committee under the coordination of the NPC Vice-Chairperson for this purpose. NPC Secretary Ravi Lal Panth informed that another technical committee has been formed to assist the committee and preliminary work has already started.

He said, “The technical committee has met and work has begun. Since it is necessary to analyse the aggregate economic indicators to estimate the sources, data and details have been requested from Nepal Rastra Bank, the National Statistics Office, the Ministry of Finance and other relevant ministries.

The technical committee is preparing for the meeting of the source estimation committee. The budget ceiling will be presented within the time specified by law.”

The National Revenue Estimation Committee is required to finalize the revenue estimates and expenditure limits by the end of Magh and submit the related report to the Finance Minister by 7th of Falgun every year as per the Act.

The Source Estimation Committee is required to estimate the total national resources for the next three fiscal years for the federal, provincial, and local levels based on projected investment and financial requirements in the periodic plan.

The 16th Five-Year Plan, which is currently being implemented, has also been sent to the Cabinet after preparing an implementation action plan, informed the Commission Secretary Panth.