The Ministry of Finance has formed a committee to draft the annual budget for Fiscal Year 2025/26, the state-run national news agency RSS reported.

According to RSS, Shree Krishna Nepal, chief of the Budget Division at the Ministry, has been appointed as the coordinator of the committee. Its members include Dhaniram Sharma, chief of the Foreign Assistance Division; Uttar Kumar Khatri, chief of the Revenue Division; Than Prasad Pangeni, chief of the Administration Division; Tirtha Chiluwal, deputy director general of the Inland Revenue Department; and Sushila Aryal, assistant comptroller general, according to the Finance Ministry.

The committee will determine priorities and principles of the budget, facilitate the selection of ministry-level projects, draft the budget speech, and provide recommendations on policies and programs, RSS quoted Budget Division Chief Nepal as saying.

Additionally, the Finance Ministry has set the maximum limit for fiscal transfers to provincial and local governments, based on figures from the National Planning Commission (NPC). It has also shared the cap for the fiscal equalization grant with the National Natural and Fiscal Commission, added RSS.

The NPC recently proposed a budget ceiling of Rs 1900 billion for the upcoming Fiscal Year 2025/26.

The government had announced a budget of Rs 1860 billion for the current fiscal year, which was downsized to Rs 1692 billion through the mid-term review.

As per constitutional provisions, the government is required to present the national budget on Jestha 15 (May 29) each year. This regulation was introduced to streamline budget execution, as past administrations faced difficulties in effectively utilizing allocated funds on time. However, despite this mandate, inefficient budget spending continues, with a tendency to exhaust funds at the last minute.