Objectives of the Financial Procedures and Fiscal Responsibility Act, 2076

Explore the major objectives of Nepal’s Financial Procedures and Fiscal Responsibility Act, 2076, including budget management, auditing, transparency, and fiscal accountability.

Major Objectives of the Financial Procedures and Fiscal Responsibility Act, 2076

Introduction

Part 10 of the Constitution of Nepal, under Articles 115 to 125, contains provisions relating to federal financial procedures. Article 125 provides that other matters relating to financial procedures shall be governed by federal law. In accordance with this constitutional provision, the Federal Parliament enacted the Financial Procedures and Fiscal Responsibility Act, 2076 to systematize public financial management and promote fiscal responsibility. The Act also provides an important framework for managing financial procedures at the provincial and local levels.

Major Objectives of the Act

The major objectives of the Financial Procedures and Fiscal Responsibility Act, 2076 are as follows:

1. Management of Government Funds: To regulate the operation and management of the Federal Consolidated Fund and other government funds.

2. Systematic Budget Management: To establish procedures for budget formulation, authorization, release, and expenditure.

3. Accounting and Reporting: To systematize the recording, accounting, and reporting of financial transactions.

4. Internal Control and Auditing: To strengthen internal control, auditing, and other financial activities.

5. Financial Accountability and Transparency: To make the federal financial management system accountable, transparent, result-oriented, and responsible.

6. Macroeconomic Stability: To maintain the stability of the macroeconomic framework.

7. Regulation of Financial Procedures: To regulate and improve the efficiency of financial procedures at the federal, provincial, and local levels.

Conclusion

The Financial Procedures and Fiscal Responsibility Act, 2076 aims to ensure disciplined, transparent, efficient, and accountable management of public resources. It provides a legal framework for budget execution, financial reporting, internal control, and auditing, thereby supporting fiscal discipline and effective public service delivery. Provincial and local governments can also use the relevant constitutional and legal framework to formulate and implement laws governing their financial procedures.

Keywords: Financial Procedures Act, Fiscal Responsibility, Public Financial Management, Nepal Laws, Loksewa Preparation, PSCInsight

Legal reference: The preamble of the Act identifies the management of government funds, budgeting, expenditure, accounting, reporting, internal control, auditing, and other financial activities as its central purposes.