Government targets completion of budget cost estimates and tender preparation by mid-July

KATHMANDU: The government has set a target to complete the preparation of cost estimates and bidding documents for projects and programs under the fiscal year 2026/27 (FY 2083/84 BS) by the end of the current Nepali month of Asar (mid-July), as part of efforts to accelerate budget implementation from the beginning of the new fiscal year.

The decision was taken during a meeting of government secretaries held on June 16 (2 Asar) under the chairmanship of Chief Secretary Suman Raj Aryal, according to the Office of the Prime Minister and Council of Ministers (OPMCM).

The meeting focused on ensuring timely and effective execution of the newly announced budget and development programs, emphasizing early completion of procurement-related processes to prevent delays in project implementation.

Procurement Preparation to Be Completed Before New Fiscal Year

Under the decision, all ministries and government agencies have been instructed to complete the preparation of detailed cost estimates and tender documentation for projects included in the upcoming budget before the end of Asar. The move is expected to enable agencies to immediately initiate procurement procedures after the new fiscal year begins.

Nepal has frequently faced criticism over delayed capital expenditure due to late procurement and project preparation. By finalizing technical documentation in advance, the government aims to improve public spending efficiency and accelerate infrastructure development.

Organization and Management Surveys to Be Completed on Schedule

The secretaries’ meeting also directed every ministry to complete Organization and Management (O&M) Surveys, including those of subordinate offices, within the prescribed timeframe.

The surveys are intended to assess staffing structures, institutional efficiency, and administrative requirements as part of the government’s broader public sector reform agenda.

Disposal of Damaged Government Assets by July 1

The meeting further instructed all remaining government entities to complete, by Asar 15 (around July 1), the legal process for either writing off or auctioning vehicles, furniture, machinery, and equipment that were destroyed or damaged during the Bhadra 23 and 24 (September 2025) demonstrations.

Agencies have also been directed to ensure that such damaged materials are removed from government office premises once the legal procedures are completed.

Audit Irregularities Given High Priority

The government has directed all ministries, departments, and public bodies to prioritize the settlement of audit observations highlighted in the 63rd Annual Report of the Office of the Auditor General.

Under the decision, every agency must submit weekly progress reports on the clearance of audit irregularities to both the Office of the Prime Minister and Council of Ministers and the committee responsible for monitoring audit settlements.

The move is aimed at strengthening fiscal discipline, improving public financial management, and reducing the volume of outstanding audit observations.

Special Audit Arrangements for Burned Records

The meeting also addressed agencies whose official financial records were destroyed during the Bhadra 23–24 protests, making regular audits difficult.

Such agencies have been instructed to coordinate with the Office of the Auditor General and complete audits in accordance with prevailing laws through alternative legal procedures.

Governance Reform Bills to Be Registered Without Delay

In addition, the secretaries agreed to expedite the drafting and amendment of legislation listed under the government’s 100-point Governance Reform Agenda.

Relevant ministries have been instructed to make the necessary arrangements to register pending bills in the Federal Parliament at the earliest opportunity, with the objective of advancing institutional reforms and improving public service delivery.

The series of decisions reflects the government’s effort to strengthen budget execution, improve administrative efficiency, enhance financial accountability, and accelerate governance reforms ahead of the implementation of the new fiscal year’s budget.