Budget Making Process and Role of Different Government ...prad-nepal.com/add_study/dhulikhel_workshop_ca.pdf · Budget Making Process and Role of Different Government Agencies in

Brief Report of Budget Making Process Workshop for CA members 29-30 April @ Dhulikhel.

Budget Making Process and Role of Different Government Agencies in Nepal; A Brief

Report on the workshop for Constitution Assembly Members

Introduction

After the people’s movement in 2005, a 601 member Constitutional Assembly (CA) was formed with a clear mandate for a

successful completion of peace negotiation and the drafting of the new Constitution of Nepal. The members in the CA

were either elected or nominated from different political parties and the cross section of the society. Majority of these CA

members were new and had no experience and knowledge of budget and budget making process. Mostly, the women

members of and those representing the minority class were among those who have been elected/nominated for the first

time in the parliament (CA). As such, these new members of parliament lacked knowledge regarding budgetary process

and the role of institutions that plays key role in its making. They seem to be much more enthusiastic about the budget as

this can help them provide some opportunity to allocate some resources on programs and projects of their choice in their

own constituency. It was thus, natural that they sought to have knowledge of planning and budget making process and

were in search of some kind of orientation on planning and budgeting process. In this connection, some of the young CA

members approached The World Bank for supporting an orientation program on budget making process. The outcome is

a two-day residential workshop on budget making process and the role of different government agencies in making it

happen.

A two days residential workshop was conducted in Dhulikhel resort on April 29 - 30. There were about 55 CA members

and political party representatives participating in the workshop. With support from the World Bank, Mr. Prithvi raj Ligal,

Chairman, PRAD Nepal coordinated the two day residential workshop for the CA members.

Objective of the workshop

The prime objectives of the workshop was to make CA members and political party representatives aware of the

government budget making process and provide knowledge of related government agencies and role of parliament in

budget formation and implementation process. However, the specific objectives were;

a. to make understand how budgetary framework is determined and how it is related to the three-five year plan’

b. to make understand how expenditures are determined, sectoral allocation are made and project/programs are

prioritized’

c. to make understand how resources both domestic and foreign resources are mobilized. What are the principal

avenues for foreign aid and why it is an important sources for country’s development endeavor?

d. to make understand the process in making budget and the role of different agencies including CA in finalizing budget

for implementation, and

e. to make understand the role of parliamentary committees in the budget making process.

Design of Workshop Presentation and Format

The choice of papers to be delivered and the contents were decided carefully so that the participants knows about the

constitutional provision of budget, relationship between planning and budget, budget preparation process, budget

guidelines, resource allocation at sectoral and regional level, allocation criteria, domestic and foreign resource

mobilization, project selection and prioritization, budgetary release and control system, reporting of expenditures, auditing

budgetary expenditures, and the role of parliament and different agencies in the process, status of internal revenue and

its contribution to budget, role of foreign assistance and the role of NPC in the overall budgetary process. Speakers were

selected with good background having sound and authoritative knowledge in the subject matter. The contents of each

papers are developed and the speakers are requested to prepare a power point based on the outline and deliver at the

workshop.

a. Workshop Topics and Presenters:

Nine topics were selected for presentation in the workshop. Paper presenters were experienced in their respective fields.

They had firsthand knowledge in the subject. They are requested to take responsibility for making a power point

presentation in the given topic and answer queries raised during the discussion. The following briefly highlights the

course content in each topic and the presenter of the paper in the workshop.


1. Budget Making Process in Nepal - Mr. Shambhusaran Kayastha (Ex-Member, NPC, secretary, GON)

This session covers Constitutional provision, Budget preparation process, Budget guidelines, Current and capital

expenditures, Budget formulation committees, Revenue estimation and expenditure allocation criteria, Budget

formats used for recurrent and capital expenditures, relationship with NPC, parliamentary procedure, financial

monitoring and MIS system, Budget red book, Source book, Financial act and regulation etc. Presenter shared

experience of budget process under various regimes.

2. Planning and Budgeting in Nepal – Process and programming – Dr. Pushkar Bajracharya (Ex-Member, NPC)

The paper focuses on the planning process of National Planning Commission, Three year plan of the government,

annual plan, resource allocation criteria, program approval steps and criteria, Project/program screening,

program/project prioritization, sectoral business plan, District programs, NPC red book Part I and II, Quarterly

breakdown of program/project activities, process for changing program and budget, MTEF, Monitoring system –

NDAC, MDAC, PMAS and DPMAS. The session also discuss on justification of existence of NPC for nation’s

development.

3. Resource Estimation in the budget – Mr. Bhanu Acharya (Ex-Finance secretary, GON)

The paper presentation focuses on tax system in the country budget, Estimation of domestic revenue – tax base,

elasticity and buoyancy of taxes, types of taxes at the centre and at the local level, tax administration, tax compliance

and Revenue collection. Non-tax – its significance and management. Revenue Board and its function, Deficit

financing – why and how much it’s implication in the country etc. Paper also highlighted the revenue scenario in

federal system and possible issues on tax right.

4. Foreign aid Management in Nepal – Mr. Vidhyadhar Mallik (Ex-Finance secretary)

This paper dealt with Foreign aid process, loans and grants, program and project loan, Aid commitment and

disbursement, basic features of SWAP and its importance and present arrangements, ESAF and other arrangements

for budget and non-budget support Foreign aid management in Nepal. Paper presenter counted his experience on

obtaining foreign assistance working under different capacities. He also highlighted the conditions appeared while

doing agreement with donor agencies.

5. Budget release and authorization process – Mr. Mukund Arjyal, (Ex-FCG/secretary, GON)

The paper covered on the system of financial control and management in Nepal, Budget release process and

authorization, statement of expenditure, foreign aid management and reimbursement process, public debt

outstanding and its management, financial accounting system and auditing process, Accounting system- cash flow

vs. accrual system, Advance budget release, District level treasury office and their role, District/VDC budget release

process financial monitoring and MIS system etc. Paper also highlighted issues, problems in budget release and

authorization process

6. Audit system and Process in Nepal – Mr. Bachhu Ram Dahal (Ex – AG, AG’s office, GON)

The paper focuses on the Constitutional provision, audit system in Nepal, Auditor General's function and

responsibility, Auditor General’s annual report, Irregularity in expenditures - why, how and how much Steps needed

to contain it? Audit system at the local body level and what should be done in the context of more resources being

allocated at the local level. Key issues and challenges in the audit system in Nepal. Measures to contain and

streamline.

7. Role of Parliamentary Committees in Budget making and Implementation – Mr. Uday Nepali Shrestha (Ex-

Secretary, Ministry of Law, Justice and Parliamentary Affairs)

The session dealt with the Constitutional provision, parliamentary committees and its function, role of parliamentary

committees in macroeconomic management and budget. Paper highlighted the process of forming various

committee in parliament, practical problems raised in functioning of committees. He shared his personal experience

while serving as GoN secretary.

8. Macro Economic management and Budget in Nepal – Dr. Posh Raj Pande (Ex-member, NPC)


The paper highlighted about the Macroeconomic fundamentals – what it is and its importance in economic stability

and growth, Monetary and fiscal policies of the country, public debts. Chart on Budgetary impact on macroeconomic

management. A current issue in macroeconomic management and budget had been delivered in chart. Paper also

dealt with issues of sustainability in economic growth and ways to maintain it.

9. Reforming budget process – Result Based budgeting – Mr. Prithvi raj Ligal (Ex-VC, NPC and Chairman, PRAD)

The paper dealt with the rationale for budgetary reform, business plan, Result based budget-basic concept, tools and

steps followed, Changes in the existing budget process and formats used, budget authority, responsibility of agency

head, accountability and incentive system as well Transparency in budget, monitoring system and role of NPC and

MOF. Presenter shared his vast experience and cited various cases of shortcoming in present budgetary process

and highlighted RBB to overcome dark side of present budget system

b. Workshop Format

After a brief outline of the rationale and objective of the workshop, the coordinator Mr. Prithvi Raj Ligal spelled out the

format of the workshop to all participants as follows;

The workshop starts at 9 am each morning and will continue till 6.30 pm in the evening with 45 minutes break for

lunch and 15 minutes break for tea in the afternoon.

Two presentation/discussion will be made in the morning session and two in the afternoon in the first day and there

will be 3 session in the second day after lunch.

Each session will last for about 1.45 hrs with 45 minutes presentation by the expert selected followed by 1 hr of

question/ discussion on the topic. The expert will give answer to all question and queries. If needed, the discussion

time can be extended for another 15 – 30 minutes.

Presentation will be made in a power point format preferably in Nepali language and the participants will be given a

hard copy of the same.

Participants can intervene during presentation if, they feel it necessary for understanding the subject. As the

objective of the workshop is to make participant understand budget making process, participants are encouraged to

ask all question in their mind relevant to the topic freely and frankly without any hesitation.

Participants are requested to introduce himself and the party they represent before making any question so that this

could be properly recorded.

Lunch break time is given as 12.15 – 1.0 pm and tea-break 4.30 – 4.45 pm every day.

C Workshop process followed:

All the presenters made presentation in power point and printed hard copy were distributed to all participants in each

session. Each presentation had one hour forty-five minutes to two hours time limit though it had to extend because of the

active participation of the participants. Presentation was made in nine different sessions spreading over two full days.

Each day the session run from morning at nine to six-thirty in the evening. In between there was quick lunch break. Each

session was delivered in Nepali language even though some presentations were in English. Presenters had elaborated in

simple language to make the participants understand the subject matter. Most of the presenters shared their own

experience and sometimes briefed short case study for better understanding of the subject matter and the issue they

faced during implementation, since they were in related chair in different government agencies. This has made the

session much livelier and encouraged participants to participate actively.

Most of the questions were asked by female participants as they are found more enthusiastic to learn as much as they

can . Repeatedly female participants, mostly representing from terai, had asked number of questions. After each session,

almost one hour fifteen minutes were allocated for discussion. The discussion period had to extend most of the time due

to active participation from the floor. Presenters replied all the comments and queries of participants authentically.

Altogether, fifty-eight (58) questions were asked by participants in nine sessions. Questions were inquisitiveness about the

budget and not hesitated to ask even the basic question on budget. As most of them seem to have little knowledge about

the budget and its process, they were very keen to learn the subject matter and their own role as a member of CA in

budget making.


Comments and questions raised by participants

In brief, the following are the question and comments raised by the participants in the two days workshop.

o Repeatedly there were two common questions, 1) why didn’t you organize this workshop earlier say, two years ago

when we join the Constitution Assembly? 2) Why you didn’t arrange this specific workshop before budget

presentation?

o Who is responsible for budget planning process and how it is relevant with public budget?

o How do we change the current budget planning process to Bottom up approach?

o What are the differences of developed and developing country’s budget?

o What are the allocation policies for district budget?

o What are the details of recurrent budget?

o Where does budget sent to the VDCs vanish?

o What is a deficit budget?

o Why is NGO/INGO spending not reflected in the budget?

o Is this the first time the budget is being approved as an ordinance?

o How are resources allocated to districts, based on population or otherwise?

o What would be the budgeting system in a federal set up?

o How is the capital and/or regular spending allocated?

o Why can’t the budget be made simple?

o How do you allocate budget for welfare of different social groups, without having their representation at DDC

Councils?

o Why are we MPs not allowed to participate in the DDC Council meetings?

o Does discussion on ILO 169 (prior consent) take place at NPC while discussing hydro projects?

o Who does supervision and monitoring? (Govt. officials don’t)

o We are in a situation where we cannot say no to foreign aid, but even with aid we seem to have problems. Donors

have their own interests – why do we accept with conditions?

o What would be our country situation if we were to say no to aid with conditions? Do we have alternatives? We don’t

discuss aid in parliament, why?

o Why accept aid if we can do without it, can we make a policy on that?

o What does central treasury system means?

o I don’t understand the terms central treasury accounting and e-bidding? Can you give us data on funds used for

constitution writing, seminar and workshops?

o What are the Paris Principles? Why has our government not been able to implement them?

o Why do MOF and other agencies have different views about aid?

o Why is all aid not included in the national budget? Where is it accounted?

o How can we influence government? It would also have been good to hear about PAF and how poverty alleviation

could be done?

o What percentage of the support in education comes without conditions?

o The data shows we are being more dependent on aid, are being more indebted and governance is also being

hampered, why then we are so desperate to get aid?

o How can we change the budget system?

o Why is budget not presented earlier (say in May) if that is needed?

o What happens to projects approved earlier but whose work has not been completed even after money has been

approved?

o What happens when we go for Results Based Budgeting (RBB)?

o How do we set sectoral priorities?

o Can we have greater participation in those meetings that set the priorities along with technocrats?

o How can RBB help making the base more active in participating in these matters?

o How do we make public audit more responsible and accountable?

Additional Sectoral questions raised in the workshop by the participants.

What is the situation of VAT, why it is so controversial and what is the reason of recent VAT scandal?

Have you assessed the tax right in Federal System?

Is Nepal heading towards a failure state?

Who is responsible for tax related corruption?

How much tax is imposed in petroleum product?

What is the role of revenue board? Is it effective in revenue generation?


Is NPC effective in budgeting process? Why planning is not properly implemented?

How NPC monitors projects? Is present mechanism sufficient?

Does Local Development Officers (LDO) know planning process? Are they in tune with National Plan?

Why I/NGO programs and projects do not enter into national plan?

What are the criteria for selecting P1, P2 and P3 projects?

Do NPC prepare human development plan?

Why women participation of national planning is not present?

Is women’s income assessed as assessment of expenditure in the name of gender mainstreaming?

Why burocrat do not suggest the right thing to ministers/leaders?

What is the magnitude of personal influence in the preparation of Red Book?

Is budget allocation to districts based on equity?

What type of conditions is imposed by donors while bestowing foreign aid in terms of loan/grants?

Is there game of commission while receiving foreign aid?

What is the motto of donors behind foreign aid?

How donors too can be accountable for use of fund?

Is Paris agreement is in favor of Nepal?

Does foreign aid reach to target group and rural area?

How long Nepal will depend upon foreign aid?

Who is responsible for unaudited budget?

Is account of I/NGO audited in Government agencies?

How government expenditure can be made transparent?

Is it possible to transfer expenditure into different budget heads?

How is the performance of Public Audit committee?

Are committees in parliament effective?

Why women are not included in committees and sub committees?

What is the role of committees in budget making process?

Are there Nepali terminologies to understand macro economy?

What are the ways to sustain macro economy of the country?

Who is responsible for making programs and projects ineffective in Nepal?

Will new budgeting system be easier to introduce? Are existing manpower is ready for that? How can it be

introduced effectively?

Recommendations by CA Members

Participants didn’t only raise questions in the workshop but also recommended some very valid points. The following are some

of the recommendations they made in the workshop:

o Nepal Government needs to change budget release process to create transparency and reliability.

o Development budget need to be monitored and made transparent.

o Country’s resource allocations have different rules; it has to make clearer in participatory method.

o Discussion process has to be made more effective and manageable in Parliament house.

o Madhesi (Terai) women, Pahadi (Hill) women, Hill Janajati and Madhesi Janajati should have different allocations in

the budget.

o You should be on the ground before initiating development projects and after completion for monitoring to find out if

the local people really got jobs or not.

o District council has mainly seven political alliances, they allocate resources within their areas, marginalized people

don’t have access to reach on them, thus Planning Commission need to think of social inclusion in planning

process.

o Women should be empowered from different cast group and they need to be represented in the decision making

process.

o Planning and Monitoring need to be made effective by related agencies.

o There is no participatory approach in identifying projects and in implementing projects. Corruption has created

problems in development and need to work out some solution to contain it.

o CA members must go back to their districts rather than surrounded only in the cities, they need to represent in the

District Council.

o Every time when there is a change in government then suddenly planning gets change, politics and country’s

planning has to be made separated.

o Few selected districts have more budget allocation (e.g., Dhanusa district has more budgets in comparison to other

terai district). Budget had to be separated with politics when the budget allocation time comes.

o Planning leaders need to design, develop and think on behalf of public in development projects.


o There are several foreign projects in the country it has to be more participative or we need to make a Basket Fund

for fruitful projects.

o Macro Economic management and Budget gave a clear data sheet and showed us to compare different stages of

the country though it was very difficult to understand since we are not from economic background.

Additional Suggestions provided in the workshop

Economy is difficult to understand, there must be orientation programs to provide knowledge on budget

and its process, information should be given to CA members.

Tax mechanism must be built in such a way that tax payers pay tax happily.

There is need of decreasing deficit budgeting

Agriculture sector is being neglected; investment in this sector should be increased.

Economic contribution of women must be evaluated in national income.

There is a leakage in revenues; there is need of strengthening tax system.

There is need of making petroleum price transparent.

Resources must be well assessed before formulating budget.

Budget should come up in time.

Program is good in paper, it must be converted in to action, and it must be well-implemented.

Performance of bureaucrats should be evaluated, and reward and punishment should be made

accordingly.

Karnali is very backward; special development programs must be brought up for its development.

Personal influence in allocating districts budget must be discouraged, it should be based on need

assessment.

No budget has been allocated in human development, it must be considered in budget allocation.

Projects come up from DDC is not often included in Red Book, due consideration must be given to it.

NPC is concerned with development and infrastructure; it must bring program to reduce load shedding and

power shortage.

Women and children are marginalized in terms of programs given to them. There should be equal benefits

to all.

Unnecessary program/ project like Sukla fanta must be scrapped in time.

Programs are made in Singh Durbar; it must be prepared in regional and local level.

Monitoring and evaluation is very weak it must be strengthened.

Criteria of widow allowance is faulty, it should be reformed.

One door system for I/NGOs is appropriate for development activities to reduce the duplication of

programs.

Good workout is necessary before inviting foreign aid, it must be of national interest not personal and

specific interest,

Entry in WTO must be reviewed; we need to focus on doing homework to tap the benefit of the WTO.

Medicinal herbs must be emphasized in medical treatment.

Budget do not reach into grassroots level, it must be checked and monitored, a system should be built for it

There is vast difference in remuneration of local/national and international labor forces in

projects/programs, it must be weighted properly.

I/NGOs are being enjoyed by richer and affluent group; it should reach to the poor and rural community.

Dalits are in very poor conditions, special package program must be introduced to uplift their livelihood.

Conflict victims are displaced, their settlement is still in problem, and it must be settled as quickly as

possible.

Parliament committees must be strengthened.

We feel fortunate to know more about budget by attending this workshop. Why not you give all CA

members a simplified handbook on budget so that we can understand the process and also our duties in

making budget a success.

Output of the workshop

An evaluation form was distributed at the end of the workshop for their independent evaluation of the work shop. The response

of the participants shows that they have found the workshop very useful and had enriched their knowledge about the budget

and the process followed there in. The point raised in the discussion shows their realization of the importance of the workshop

in making them understand about many things that are relevant to budget making and implementation. The often repeating

question - why such workshop was not organized few years back when they were fresh in the CA – reflects their views about


the significance of the workshop. The following table shows the percentage of respondents responding in each of the question

they are asked for;

Question asked % of

respondents

1. How much you know about the budget before this workshop?

a. Know everything about budget.

b. knows about budget but don’t know about its importance.

c. Know about budget but don’t know its process.

71

13

16

2. How much you know about budgetary process?

a. knows when the budgetary process starts and completes.

b. Know how budget is prepared but don’t know about its process.

c. Don’t know when it begins and what its processes are.

50

50

0

3. What do you know about the role of different institutions in the budget making process?

a. knows about the role of different institutions in the budget making process.

b. Know about the involvement of the institutions but don’t know about their role.

c. Do not know anything about the role of the institutions.

46

42

13

4. How do you find the objective of the workshop?

a. The workshop is very effective in meeting its objective.

b. Good. Such program should be conducted time and again.

c. less than expected.

75

25

0

5. How do you find the contents of the presentation?

a. The presentation adequately covered different aspect of budget and its process.

b. Some important aspects are totally left by the presenter.

c. The contents seem more than required.

75

25

0

6. How do you find the presentation made by different speakers?

a. All presentation was very effective.

b. Some of the presentation was not very effective

c. The response of some of the presenter were not satisfactory

54

38

8

7. How do you find the time allocation for the presentation and the discussion in the

workshop?

33


Lesson Learned

Overwhelmingly, the CA members show their interest in knowing more about the budget and its process so that they

can participate actively during the budget session in the parliament.

Female CA members remained more active in participation and eager to know more about it.

The participants want more time in the discussion so that they can ask more questions to make them understand

about the budget.

A simple presentation in Nepali language seems more effective as the language barrier forced CA members to

participate less in the discussion. The presentation should be in simple Nepali language. This encourages more

people to participate in the discussion.

More use of technical jargon is found making them confused and less understanding. As most of the CA members

are not much literate, they need lesser use of technical jargon.

Repetition of such workshop will greatly help CA members to understand budget and as such capacitate them to

participate in a meaningful ways in the budget discussion in the parliament.

a. Very adequate for the presentation as well as for the discussion

b. The time allocation for discussion was too little and so not much discussion took place

c. The time allocation was too long for both presentation and discussion

54

13

8. What is your feeling regarding two days workshop?

a. Two days workshop is adequate

b. The workshop would have been more effective had we organized it in an intermittent

manner

c. Two days workshop is too tiring

29

63

8

9. How do you found yourself at the end of the workshop?

a. Very effective. It enriches my knowledge about the role of the institution and the

budget making process.

b. As I know about the process, it does not add up to my knowledge

c. It adds up my knowledge of the role of institutions in budget making and its process

67

0

33

10. Please suggest how the workshop could be made more effective?

a. program is good and you need to continue it bringing more people in the workshop

b. program is ok but you need to revise it based on this workshop experience

c. program is not good. We could not benefit much

88

8

4


Annex 1

Budget Making Process and Role of Government Agencies in Nepal: A Workshop Training for CA members

Venue: Dhulikhel Resort hotel, Dhulikhel

Date: April 29-30, 2011

Program Details

1st day program (April 29, 2011)

7.30 am Bus leaves to Dhulikhel 9. – 9.45 am Check-in in the resort 9.45 – 10.15 am Tea/coffee

10.15 - 10.30 am Highlights of the workshop and work shop modality - P R Ligal (Workshop Coordinator)

10.30– 12.15am Budget Making Process in Nepal - Mr. Sambhusaran Kayastha (Ex- member, NPC; Ex-

Secretary, GON)

What is budget? Constitutional provision, Budget preparation process in Nepal - Budget guidelines, Current

and capital expenditures, Budget formulation committees, Estimation of resources and public debt and

recurrent expenditure allocation criteria Budget formats used for recurrent and capital expenditures,

parliamentary procedure, financial monitoring and MIS system, Budget red book, Source book, Finance act

and regulation etc.

12.15 – 1.0 pm Lunch break

1.0 - 2.45 pm Planning and Budgeting in Nepal – Process and Programming – Dr. Pushkar Bajracharya (Ex-

member, NPC and Professor, TU)

Three year plan and annual plan, annual plan and program, development budget allocation criteria, program

approval steps and criteria, Project/program screening, program/project prioritization, sectoral business plan.

District budget –guidelines and budgetary ceiling, NPC red book Part I and II, Quarterly breakdown of

program/project activities, process for changing program and budget, MTEF, Monitoring system –NDAC,

MDAC, PMAS, DPMAS.

2.45 – 4.30 Domestic Resource Estimation in the Budget – Bhanu Acharya (Ex-Finance secretary, GON)

Estimation of domestic revenue – tax base, elasticity and buoyancy of taxes, types of taxes at the centre and at

the local level, tax administration, tax compliance and Revenue collection. Non-tax – its significance and

management. Revenue Board and its function, Deficit financing – why, how much and its implication.

4.30 - 4.45 pm Tea/coffee break

4.45 - 6.30pm Foreign Aid Management in Nepal -Bidhyadhar Mallik (Ex-Finance secretary and VC-Poverty

Alleviation Fund)


Foreign aid process, loans and grants, program and project loan, Aid commitment and disbursement. Multi-lateral and bi-lateral aid and loans, basic features of SWAP and other forms of aid - its importance and present arrangements, ESAF and other arrangements for budget and non-budgetary support,. Foreign aid management in Nepal

2nd

day program (April 30, 2011)

9 – 10.45 am Budget Release Process and expenditure authorization – Mr. Mukund Arjyal, (Ex-Finance

Comptroller General/Ex-Secretary, GON)

System of financial control and management in Nepal, Budget release process and authorization, statement of

expenditure, Foreign aid reimbursement process, public debt outstanding and its management, Financial

accounting system and internal audit process. Accounting system- cash flow vs. accrual system, Advance

budget release, District level treasury office and their role, District/VDC budget release process financial

monitoring and MIS system etc.

10.45 – 12.30pm Audit system and Process in Nepal - Bachhu Ram Dahal (Ex – Act. Auditor General, AG’s

office, GON)

Constitutional provision, Auditor General's function and responsibility, Audit system and process in Nepal,

Auditor General’s annual report, Irregularity in expenditures - why, how and how much? Steps needed to

contain it. Audit system at the local body level and what should be done in the context of more resources

being allocated at the local level. Key issues and challenges in the audit system in Nepal. Measures to contain

and streamline it.

12.30 – 1.15pm Lunch break

1.15- 3.0pm Role of Parliamentary Committees in Budget making and Implementation – Uday Nepali

Shrestha (Ex-Secretary, Ministry of Law and Justice)

Constitutional provision, Parliamentary committees and its function, role of parliamentary committees in

macroeconomic management and budget, Parliamentary committee on budget (project/program)

implementation, monitoring and supervision. Role of parliamentary Economic committee and Public accounts

committee in budget making, implementation, monitoring, supervision and audit of expenditures

3.0 – 4.45 pm Macro Economic management and Budget in Nepal – Dr. Posh Raj Pande, (Ex-member, NPC;

Chairman, SWATEE)

Macroeconomic fundamentals – what it is and its importance in economic stability and growth, Monetary and

fiscal policies, Public debt, budgetary impact on macroeconomic management Current issues in

macroeconomic management and budget

4.45- 5.0 pm Tea break

5.0 – 6.30 pm Reforming budget process – Program budget and Result based budgeting – Mr. Prithvi raj

Ligal (Ex-VC, NPC)


Rationale for budgetary reform, Program budget and benefit incidence/cost effectiveness analysis. Result

based budget - basic concept, tools and steps followed in its preparation, Advantage of RBB. Transparency in

budget and role of NPC and MOF

7 pm Reception

May 1, 2011

7.00 – 8.30 am Breakfast

9 am Bus leaves for Kathmandu

Annex-2

Budget Process and Role of Government Agencies in Nepal: A Workshop for CA Members

Venue: Dhulikhel Resort

List of Participants (Day 1- April 29, 2011)

S.N. Name of Participation Political party Position Contact No.

1. 1 Mr. Bhanu Parsad Acharya - Paper Presenter 01-6631340

2. Mukunda Parsad Aryal - Paper Presenter 01-5560996

3. Govinda Bikram Saha RPP CA Member 9851086046

4. Udya Bhandari - Gov. Employee 9841569167

5. Dinesh Acharya - Gov. Employee 9841694920

6. Prikash Ghimire - Associate Prof. 9841335280

7. Kalpana Dhamala ANCP (Maoist) CA Member 9851020653

8. Januka Paudyal ANCP (Maoist) RBM 9856028007

9. Parbati Hahato (Kumal) NCP (Male) CA Member 9841168045

10. Janak Kumari Chalese CPN (ML) CCM, (CA

Member)

9841851500

11. Madhu Kumar Chalise CPN (ML) CCM 9841696810

12. Basu Ram Singh Thapa PMC Ass. C. Chief 5590639

13. Birbal Rai N.C. CM Member 9841729932

14. Indira Gurung NC. CM Member 9803512828

15. Khem Bam ULPM (A.M.) C.A.M. 9851061973

16. Nawaraj Koirala NWPP C.A. Member 9841814155

17. Kabita Sharma N.C. 9841285081


18. Hira Gurung N.C. C.A. Member 9841814155

19. Kamal Rai N.C. C.A. Member 9841462784

20. Karima Begam MJF

(Democratic)

C.A. Member 9851115969

21. Aasa Kumari Sardar MJF

(Democratic)

C.A. Member 9849271663

22. Hira Rai Rastiya Jana

Mukti Parti

C.A. Member 9741058528

23. Laxmi Rai N.C. C.C. M. 9808082098

24. Modhe Acharya N.C. Ex. DC

Chairman

9851112067

25. Maya Bade Shrestha N.C. Member – NC 9841247677

26. Urmila Sapkota N.C. Member – NC 9841449294

27. Parma Paudyal Ministry Of

Finance

Account Officer 9841769927

28. Bidhan Acharya TU Reader 9851046692

29. C.D. Joshi NCP (United) Chairman 9841552585

30. Pramod Raj Dhakal Organizer,

PRAD

9851012310

31. Geeta Ram Shrestha PRAD Nepal F\A Chief 9841585769

32. Utsab Bhattarai PRAD Nepal R\A 9845394256

33. Prasant Raj Ligal PRAD Nepal Adm. Assistant 9849757468

34. Geeta Adhikari PRAD Nepal Acc. Assistant \

Computer Opp.

9841894941

35. Kishor Maharjan PRAD Nepal Research

Collaborator

9851044653

36. Shanta Karki N.C. Member 9849072227

37. Sukdaiya Chaudhary U.m. C.A. Member 9741176729

38. Sabitri Lamichhane N.C. Member N.C. 9841036011

39. Prithvi Raj Ligal Prad,Nepal Chairman 9851078572

40. Sambhu Saran Kayastha Paper Presenter 9851106430

41. Pushkar Barjacharya Paper presenter 9841684519

42. Lila Nyaichya NWPP C.A. Member 9851058495


43. Nirupama Yadav Nepal

Sadbhawna

Parti

Lawyer 9841348181

44. Rima Kumari Nepali C.P.N.U.M.L. C.A. Member 9841580900

45. Kamala Sharma 9741154286

46. Narayani Ghimire (Aryal) CPN (UML) C.A. Member 9847069631

47. Yashoda Adhikari CPN (UML) C.A. Member 9741676741

48. Durga Pariyar CPN (UML) C.A. Member 9741158063

49. Sonam Chali Lama CPN (UML) C.A. Member 9741173762

50. Gopal Sing Bohara CPN (UML) C.A. Member

9741137431

51. Akal Bhahadur Thims UCPN (Maoist) C.A. Member

9851019806

52. Alow din Ansari RPP C.A. Member

9841579234

53. Bhaire Kami CPN (UML) C.A. Member

9849716789

54. Arjun Rai R.J.P. C.A. Member

9851075385

55. Gyanendra Khanal UCPN (Maoist) C.A. Member 9851108426

56. Vidyadhar Mallik Paper Presenter 9851033035

Annex-2

Budget Process and Role of Government Agencies in Nepal: A Workshop for CA Members

Venue: Dhulikhel Resort

List of Participants (Day 2- April 30, 2011)

S.N. Name of Participation Political party Position Contact No.

1. Laxmi Rai N.C. C.C. M. 9808082098

2. Chhayama Rai R.J.P. CA Member 974158528

3. Gopal Sing Bohara CPN (UML) C.A. Member 9741137431

4. Bhaire Kami CPN (UML) C.A. Member 9849716789

5. Narayani Ghimire (Aryal) CPN (UML) C.A. Member 9847069631


6. Parbati Hahato (Kumal) Ne.Ka.Pa (Male) CA Member 9841168045

7. Rima Kumari Nepali C.P.N.U.M.L. C.A. Member 9841580900

8. Yashoda Adhikari CPN (UML) C.A. Member 9741676741

9. Janak Kumari Chalese CPN (ML) CCM, (CA Member) 9841851500

10. Durga Pariyar CPN (UML) C.A. Member 9741158063

11. Sonam Chali Lama CPN (UML) C.A. Member 9741173762

12. Indira Gurung NC. CM Member 9803512828

13. Kamala Sharma CPN (UML) C.A. Member 9741154286

14. Birbal Rai N.C. CM Member 9841729932

15. Nawaraj Koirala NWPP C.A. Member 9841814155

16. Khem Bam ULPM (A.M.) C.A.M. 9851061973

17. Hira Gurung N.C. C.A. Member 9841814155

18. Kamar Rai N.C. C.A. Member 9841462784

19. Bachhu Ram Dhahal Presenter Paper Presenter 9841554333

20. Nirupama Yadav Nepal Sadbhawna Parti Lawyer 9841348181

21. Madhu Kumar Chalise CPN (ML) CCM 9841696810

22. Arjun Rai R.J.P. C.A. Member 9851075385

23. Biksh Ghimire T.U. Assistant Professor 9841335288

24. Basu Ram Singh Thapa PMC Ass. C. Chief 5590639

25. Dinesh Acharya - Gov. Employee 9841694920

26. Udya Bhandari - Gov. Employee 9841569167

27. Parma Paudyal Ministry Of Finance Account Officer 9841769927

28. Maya Bade Shrestha N.C. Member – NC 9841247677

29. Shanta Karki N.C. Member 9849072227

30. Kabita Sharma N.C. 9841285081

31. Alow din Ansari RPP C.A. Member 9841579234

32. Govinda Bikram Saha RPP CA Member 9851086046

33. Gyanendra Khanal UCPN (Maoist) C.A. Member 9851108426

34. Akal Bhahadur Thims UCPN (Maoist) C.A. Member 9851019806

35. Utsab Bhattarai PRAD Nepal R\A 9845394256


Annex 3

Comments made by the participating CA members and Political Representatives in the discussion

Presenter: Bhanu Prasad Acharya, Ex-Finance Secretary

QUESTIONS ASKED BY:

- Kumar Rai, (CA Member Bhojpur, Nepali Congress)

Thanked the presenter and said that the CA members cannot read all the things mentioned in the budget book or may not understand the entire things that are mentioned in the Fifth Year Planning/third year planning volume. So we may not know everything that we are supposed to know. Because of the lack of economics knowledge and terminologies, we may not understand all the economic words and budgetary stuffs.

He raised the question of WTO in reference to Nepal. He says it’s not a proper time to be a member of WTO; it’s too early in case of Nepal. He says instead of bringing positive result, WTO might show negative effect while we observe in Nepal’s case. He questioned that the result of being a WTO member in case of Nepal might ruined the Nepalese economy. He also brings the issue of the resignation of Ex-Finance Secretary Rameshore Khanal and focuses that the higher position people in

36. Pramod Raj Dhakal Organizer, PRAD 9851012310

37. Bidhan Acharya TU Reader 9851046692

38. Gita Rijal DRMN Assistant 9808361728

39. Anishma Dhakal DRMN A.P.C.

40. Aasa Kumari Sardar MJF (Democratic) C.A. Member 9849271663

41. Karima Begam MJF (Democratic) C.A. Member 9851115969

42. Rosan Bajracharya The World Bank 4226792

43. Sukdaiya Chaudhary U.m. C.A. Member 9741176729

44. Kalpana Dhamala ANCP (Moist) CA Member 9851020653

45. Devi Khadka ANCP (Moist) CA Member

46. Rajendra Adhikari UML CA Member

47. Geeta Ram Shrestha PRAD Nepal F\A Chief 9841585769

48. Prasant Raj Ligal PRAD Nepal Adm. Assistant 9849757468

49. Geeta Adhikari PRAD Nepal Acc. Assistant \ Computer Opp. 9841894941

50. Prithvi Raj Ligal Prad,Nepal Chairman 9851078572

51. Kishor Maharjan PRAD Nepal Research Collaborator 9851044653

52 Uday Nepali Shrestha Paper Presenter

53 Posh Raj Pandey Paper Presenter


Nepal at government offices are involved in bribery and black money. He doubts over the officials. He says that they have already earned good sum of money in their life. He then adds why they are getting involved in such bad and greedy activities of taking bribes and doing black acts that gives them huge sum of black money. Is there any law or rule that can be formed by government so that all the people in Nepal do pay the taxes without the feelings of compulsion but with (happy mood)??

- Madhur Chalise (NCP- MALE)

Why deficit budget in Nepal? How about maximizing our own internal resources in our country and minimizing external aid from outsiders (foreign countries) in case of the economic development of Nepal?

From 12 districts we get 94% tax revenue, whereas the remaining 6% tax comes from other 63 districts…this is very interesting. And added its relation with the concept of Sanghiya samrachana….is it useful and reliable in case of Nepal, was his question.

- Baburam Singh Thapa, (Patan Campus, Professor Management Faculty)

Thanked the presenter and asked if our Nepal in present is following the Economic structure like of Rana Regime like in the past. Who is responsible in the leakages of revenue in Nepal? Is that bureaucrats, politicians, or is this because of lack of proper knowledge of this revenue topic in public?

How Revenue Board is in working in Nepal? Is it useful?? Nepal has not focused on the issues of agricultural development. Politicians/ GoN have not given attention toward the development of agricultural industries in Nepal.

- Kalpana Dhamala (CA member CPN- UMaoist, Dhading)

What is Revenue Board and who is responsible for the revenue leakages in Nepal- is that the people from Beurocratic side or political parties? What happens if we go for sanghiya system where there is the vast gap in generating the amount of revenue in Nepal- referring to the earlier comment made by Madhur, who says that 12 districts provide 94% revenue of the total and 6% from the remaining ones..). This way the district that generates more tax will only run and the remaining ones will be in zero…

How much percentage of women labor in economic value is evaluated in Nepal in terms of tax collection and what type of system can government form to make this issue easily understandable…Why the state is not adding the income that women are generating in Nepal are added to the national income?

- Karima Begam, CA Member, Parsa (MJF-Nepal- Loktantrik)

Raised question about revenue leakages, gives examples of Birjung Bhansar office, and says it generates 24% of the total income from tax in Nepal. There is a trend of illegal activities such as taking bribes and making fake documents while importing goods from India and the officials do illegal activities for bribes…in Nepal, we have provided less budgets in the agricultural sector, which is very sad. How can we reduce poverty, and provide incentives to farmers while importing technical goods like machineries and tractors at vansar??

- Hira Gurung, (CA Member, Nepali Congress)

Thanked to organizer and presenters. Why the prices of Petroleum products in Nepal are increasing, but why the GoN always says that we are loss in petroleum stuffs?? Asked how we can reduce deficit budget, please clarify.

- Sukdaya Chaudhary, (CA Member, CPN-UMaoist)

The budget of NGO/INGOs in Nepal is more compared to the budget of Government, but why is this not made one door system? They get more money and invest uncontrollably, and the bills of NGO/INGOs may not be always actual since it is easy to make fake things in Nepal. Why the GoN and


NPC are are not thinking about one door system in Nepal to control the budget? The GoN has become NGO and the NGO has become Government in Nepal, this is ridiculous.

- Bidhan Acharya, (Associate Professor, Population Department at T.U.)

For what is Budget? Do we make programs for development first or we make programs according to the available budget? When we make programs, first of all we have to research about the available national and local resources and then make budget to fulfill those projects. If we have fewer budgets then we can think of external and internal debt in a proper way. That is his suggestions to the concerned authorities.

- Janak Kumari Chalise, (CA Member, CPN- ML)

Budget should come in time; the time that the budget is announced is not viable. We do go for sanghiya system for sure, but how the budget works in this context?

- Nabaraj Koirla, (CA Member, CPN- NEMAKIPA)

Asked to clarify the budget amount of different topics that are presented in the hand outs provided.

Presenter: Prof. Dr. Pushkar Bajracharya, EX- NPC Member

QUESTIONS ASKED BY:

- Madhur Chalise, (CPN-MALE)

Thanked the presenter. How is the budget of NPC that is mentioned for expenditure for certain topic in their RED book is implemented? He thinks the monitoring and evaluation part from government side looks not so strong. Our program looks very good on paper but the practical side is just opposite.


The use of English in presentation is vague to understand for all, it’s good and understand for all in Nepali language since everybody does not know English well. He said that the LDO in Bhojpur District is irresponsible in clarifying about the activities that have been implemented in his district; he said the LDO explains in English to make the CA members and other poor English readers more confusing etc. It’s good to ask the GoN to scheduled programs in Nepali so that all CA Members can see the clear pictures of programs and projects that are mentioned in policies, programs and budget books of Nepal. He commented the Fifth Year Planning is not accepted by the public, so it got failed in implementation.

- Januka Poudel, (CPN-UMaoist)

Thanked to the organizers. Use of English in presentation is vague to understand by all. It’s good to gather all the CA members in such program and it would be good to organize such program by the government side. The persons who have more power give better programs to their people and place and other can’t do that way. Raised the issue of budget for women development. Economy of Nepal should be strong to make our economic conditions effective. There should be the system of evaluating work credits of bureaucrats in government level to make every work better. That is my suggestions to you.

- Khem Bam, CA Member, (CPN-UMaoist)

All problems are stuck in upper level it’s not with the public. He said he went to everywhere at NPC and ministries for the development issues of Karnali region and Doti, but the responses about budget were given properly.



He says the CA Members in individual have only the rights of using only 10 lakhs for investment in their districts and areas. His concern is about the trend where the CAMs and people who are close to the Finance Ministers and NPC people do get enough budgets for expenditure. What is the role of NPC to remove this trend? How do you select and determine several program and projects in NPC?

- Laxmi Rai, (Central Committee Member, Nepali Congress)

Why there is no budget for human development? Why there is only physical infrastructure development programs/projects by NPC? Our society is paralyzed since there is no particular program for women and children; they are always at low level, undeveloped. We talk a lot about other things but nobody talks about HD and women.

- Maya Bade Shrestha, (Nepali Congress, Kavre)

It is said that DDC makes programs and projects, but we see the programs and budget made by NPC, we don’t find any programs that are built by DDC in actuality. MCPM is good thing but she thinks it is not implemented in practical level. We have also few examples in Kavre District that NPC has not included the programs sent from DDC level. Who is responsible to answer this question- the programs sent by DDC for local people is ignored and it’s not in NPC’s programs.

- Lawyer (Nepal Savawana Party- Sarita Giri Group)

In which year is this program made: the darkness of KTM (water and electricity)? Since you have been involved in NPC and national program building level for long time, how do you respond to this question: is it possible to control the private sector’s program and include those programs in NPC’s (government’s) program? She wants to know the views of planning experts. Most of the programs in KTM are done by private sectors, is not this possible to do by the government itself?


Thanked the presenter and organizer. Women are paralyzed from different angles in Nepal, women

and children are marginalized in terms of programs given to them. There should be equal benefits to

all. Where is equity?

- Kalpana Dhamala, CA Member, Dhading (CPN- UMaoist)

She does not think that the dialogue which is ongoing is not reliable and meaningful. CA Members are asking like they are talking to the state but it’s not like that- it’s just a workshop that tries to clarify the budgetary processes. What is the basis for canceling the programs that are mentioned in Red Book of NPC when needed? Some of them are unnecessary and it’s said that NPC can’t cancel it. NPC says the programs in RB can’t be canceled, what can we do for that to make it workable/changeable when needed?


Why don’t you make the programs in the field, it’s always done inside the Sinhadurbar on table? That can be done from regional level too, what have you thought about this thing?

- Sukdaya Chaudhary, (CA Member, CPN-UMaoist)

Why NPC makes very low scale budget for women, it’s because there is no women member in NPC. Budget must go to the place where it is needed in reality. There should be proper monitoring and evaluation over the projects and programs after they get started.


- Hira Gurung, (CA Member, Nepali Congress)

Talked about the sum and benefits given by Government to widows over the age of 60. When ladies become widow, no matter in which age they are so, they should get same benefits like of old aged widows. Also, the child and women should be given proper budget for their overall development, if real balanced development is expected.

- Asha Sardar, CA Member, (MJF-Nepal- Loktantrik)

What does Monitoring Committee do in practical level? We have one example in our district. The budget is made by NPC for irrigation in Morang district, but there is no river over there. What is that, how do you monitor that reality since you are talking that monitoring system strongly prevails in NPC system? Next, we have not addressed all types of women’s problem. Why are you giving just 18% or less budget to women, it’s not enough for them. You talk about 33% to women at all level, but it is not seen on ground.

Presenter: Shambhu Sharan Kayastha, EX-secretary and Ex-member, NPC

- Gopal Singh Bohora, CA Member, (CPN-UML)

Might be political leaders do have political selfishness but why the big minds like you people don’t have nice thoughts for the country and best national policies?? There is always the trend of nepotism and chakadibaj.

- Alauddin Ansari, CA Member, (NDP- RA. PRA. PA.)

Why is this system developed in Nepal- like who has the close connection with Leaders and budget makers, they get more budget and the others are at back always. We can see in the Red Book that the more budget is provided to the districts from where the budget makers are.

Presenter: Vidyadhar Mallik, Ex- Finance Secretary

- Januka Poudel, (CPN-UMaoist)

Thanked the organizer and presenter. She thinks that the program is very useful to all CA Members from several points of view. Why do foreigners give us grant? Is it given to us to make us their slave? Why do they keep several conditions while they are ready to support us financially? Talked about the usefulness of one door system like previous CA Member.

- - Kamala Dhamala, CA Member, Dhading (CPN-UMaoist)

Foreign aid is given to Nepal to make us more dependants in her view. Why the people who are in higher position of government services who are supposed to control this issue are instead more inclined and involved in opening NGO/INGOs while it is assumed that INGOs and NGOs make us more dependants.


Foreign Aid in Nepal is not clear since the donors keep more serious conditions to Nepal in the name of donations or financial assistance.

He thinks that foreign aid comes to Nepal in a ratio and percentage how much goods we buy from them. We are heard that the foreign aid creates jobs creation, but how is that true since they restrict us from opening new businesses and they say that we have to buy goods from their companies. He thinks that the percent that we get as grant from foreign countries depend on the ratio that we buy goods from them.

We can’t compete with other big nations in terms on being a WTO member. It’s not a good decision to become WTO member in Nepal’s case. Who insisted to become so for Nepal? He raised the issues of


using traditional knowledge and medicinal herbs which might have very big scope for improved economy in Nepal.

- Gopal Singh Bohora, CA Member, (CPN-UML)

He said that the Officials in Nepal take commissions with NGO and INGOs when bring programs in Nepal.

Budgets are being given to the same districts time and again, and some of the districts are not even given budget for one time, how do you select about this?

He also said that VC of PAF Mallik gets a salary of more than 3 lakhs.


We get foreign aid in a large amount, but I want to know the reason why they are funding us that way. What type of benefits do they expect from us in fact, I am eager to know about this? We hear that when we get foreign aid or outer help, that makes our capacity and expertise diminished. What is this??


We have been getting lots of foreign aid from other countries but our country is not developed and is poor, why is that? I think the budget is not reached to the local level in reality. Also, the budget that comes from other countries as assistance is not utilized for the development of women and children. She thinks that for the real overall development of Nepal, the budget should be implemented to the grass root level for women, dalits, underprivileged group and children first.

- Nirupama Yadav, Lawyer

Thanked the presenter. Asked about the bad side effects of foreign aid? I think it is the root cause that makes us less active and more dependants on others. What type of development is needed to us is not realized by us, we only think of how much money we get from outsiders and we follow the pattern that the outsiders are interested in their paper while assisting us, which might not be good in practicality. Mostly the programs for women, Dalit and children are only launched when NGOs and INGOs are interested to do so, but other times there is no attention on this topic. She also wanted to know the full form of AKRA which was mentioned in PowerPoint. What is Nepal Bikash Manch (development forum) and PARIS convention..??

- Janak Kumari Chalise, (CA Member, CPN- ML)

Thanked to the organizer and presenter. She says this program is very beneficial and effective. She wanted to know how much benefits we are getting from foreign aid. What sorts of plan and policies should be made to make our country progressive and better economically and not to repeat the wrongs doings of past time. She raised the issue of climate change as well. The local resources are being depleted in Nepal, we need to preserve and promote those things. . What type of foreign aid is needed in Nepal we need to know about that in detail. Labor salary is not distributed equally. Some people who come from abroad get salary in dollars whereas we Nepali get in Rs. It’s not fair. Why does govt. ask for foreign grants and aids in fact and from when did this trend come in Nepal?

- Durga Pariyar, CA Member from Udaypur, (CPN-UML)

Thanked organizer and presenter. She thinks the program is very effective and knowledgeable. We are rich in natural resources, but we are poor. We are not identifying the resources that we have. We are not utilizing our own resources. Is there any way that we can use our own resources and be fewer dependants on others? What is poverty and how do we calculate the level of poverty in fact?


- - - Bidhan Acharya, Associate Professor of Population Department in TU.

We need to show our needs and programs to the foreigners, and get grants or aids from foreigners. Mostly the foreign assistance is given on the basis of personal attachment. If we have good relation with them, we get money from them. If the person with whom they have close relation they help us otherwise it’s not given.

- Gyanendra Kumal, CA Member, CPN-UMaoist

What is PARIS Theory? Is it in favor of donors or receivers? What is Procurement Act, how is the interest of donors is increasing in Nepal? How is it supporting in case of Nepal.

- Sonam Chali lama, CA Member, CPN-UML

I am from underprivileged community. INGO and NGOs are working in Nepal for our good but why are country is being poorer and poorer day by day. We have lots of poor people all over the country in village and in towns. So, we need to develop that entire thing. The entire budget that comes in Nepal through NGOs and INGOs is run by big heads and money is not utilized properly at grass root level. Poverty alleviation Fund is not working properly. This has created imbalanced growth in Nepal between poor and rich. NGOs and INGOs are run by high class people and it has not given equal chances to all Nepalese of various classes and castes.


Nepal is like a beggar, it always asks for everything with other countries. There is no proper system in Nepal. There are lots of herbs and local medicines in Nepal; we have not utilized this thing in practical level. It has great scope for economic development but nobody has emphasized on this matter. There is no need to buy and import the medicines from other countries if we use our own local medicinal resources. What he thinks is there might be some mechanism which is trying to make Nepal poorer and poorer.

- Bhaire Kami, CA Member, (CPN-UML)

We have not used the financial aids in proper place. The aids that come from NGOs and INGOs for the development of certain groups or targeted groups in Nepal get disappeared on the way. They just make the report and submit to their offices to show that project is successful and completed, but in fact they are all artificial documents, nothing is done on the ground. To raise the life standard of all Nepalese people, the resources must be identified and that must be planned in a better way so that the economic level of dalits and underprivileged groups come up.

- Khem Bam, CA Member, (CPN-UMaoist)

There is a trend of Govt. Officials to complain that they couldn’t do anything while they are in positions, but when they are retired or out of employment, they raise the voice for development, what is this? The people or politicians who have close relation with NPC people and big heads from where they can get budget are the only ones who get money to their districts and villages, but rest of the members are deprived of that. Why is that? There are no enough budgets for development in agricultural sector; this is the only one base of economy in Nepal.

- Hira Gurung, CA Member (Nepali Congress)

There are so many people displaced people in Nepal since the time of Maoist revolution. She says that she has listened that few of the nations have helped in replacing those displaced people but is asks


that if that is true. She again asks that if that is true, which country helped them in doing so and how many people were replaced and where.

- Bikash Ghimire, Associate Professor of T.U.

He says that we have got lots of donors and foreign aid from other countries and NGOs and INGOs are also emerging in Nepal since after the restoration of democracy with various programs. The budget that is made by Govt. is seen and transparent but the I/NGOs’s budget is not transparent and not publicized, why is that? How can we make all the budgets and programs of I/NGOs very transparent?

Presenter: Mukunda Arjyal, Ex-Financial Comptroller General

- Bhaire Kami, CA Member, (UML)

From when did the budgetary system come in Nepal and on what basis are budgets and programs made?

- Alab Din Ansari, CA Member, (NDP- RPP)

We CA members don’t know when and how the budget is determined and disbursed. This would be better if such programs were organized before a year or two so that we would be clearer about the budgetary process. There is more beruju budget, who is responsible for that??

- Parama Poudel, (Section Officer, GoN)

Is there a record or does the office of Attorney General get information about the budget of I/NGOs? Is it transparent from all aspect? I don’t think it’s transparent.

- Madhur Chalise, (CPN-MALE)

What can we do to remove uncertified budget (beruju)? What happens if we think and consider Public audit type thing in Nepal? Won’t it be more transparent and effective?

- Sonam Chali Lama, CA Member, CPN-UML

Can we see the real budget sheet and the donations given by I/NGOs and donors? Here is a trend of establishing NGOs by big headed people and Govt. Officials which is run by their own family members. Husbands open NGO and wives become manager of those offices or wives open NGOs and husbands draws fund from outsiders.

I doubt if leaders themselves are also connected with these people by getting some commissions from them and are not raising the voices against such people and unclear process of NGOs in fact.

- Durga Pariyar, CA Member from Udayapur (UML)

How does audit system work in Nepal? From where does money come to our national treasure and what is the way of collecting money from various resources?


Why do not give needed budget for the development of women, children and Madhesis? How is budget divided and disbursed for different sectors in NPC? She complains that there are illegal ways of changing topics of budget in the night time at govt. offices. They remove the topic of projects and


programs that is made by NPC people and replace with other programs that give them the personal benefits? This thing is seen in reality. Who cares about that thing and who is responsible?

Presenter: Bachhu Ram Dahal, Ex-Attorney General


Why so much unaudited cases are found in government expenditure? How can it be reduced?

How public account committee in the parliament can be made more effective?

Presenter: Uday Nepali Shrestha, Ex- Law Secretary

- Reema Nepali, CA Member (CPN-UML)

Who calls for the various subjects experts in America to give advises to the parliament members, is that the members of parliament themselves or who? It’s good to gather information and knowledge from the experts to make any work effective and useful.

She was curious to know what sort of remarkable work the presenter did for the country and people when he was a government officer and plan maker etc.

- Kumar Rai, CA Member from Bhojpur, (Nepali Congress)

He said he did not like West Minister System. He talked about the committees and sub committees that are formed by government and said that the usefulness of those committees is less, since they are not actively working and unknown about the agenda what they are doing.

He says it’s very difficult to finalize constitution and talks about the issues of MRP, he argues there must be a crucial role of CA members in Nepal which is not considered seriously.

- Hira Gurung, CA Member, (Nepali Congress)

It would be very nice and useful if this program was organized 2/3 years ago. That way CA Members would be more aware and knowledgeable of such budgetary issues. Although it’s late, it’s been useful for sure.

She also said that CA members have been giving attention on the government works and plans. She says we have been discussing about the effectiveness of programs and plans and their effectiveness at CA level.

- Gopal Singh Bohora, (CA Member, CPN- UML)

He says that he himself does not know what he is supposed to in the committee where he is member. He says these things are not clear cut and straight forward. There are so many things which are in disorder so that the effectiveness of the work and programs are not coming on real ground.

- Shhukdaya Chaudhary, CA Member (CPN-Maoist)

Why the government does not provide enough budgets for the programs and development of women, children, dalits and Madhesis etc.? The government has no attention over this issue. Until this issue of women and children is thought seriously the overall development of Nepal is impossible.


Presenter: Dr. Posh Raj Pandey, Ex-Member, NPC &Chairman, SWATEE

- Bhaire Kami, CA Member (CPN-UML)

He said that the presentation was good but he doubted that the power point that was presented in English might be more vague and not easily understandable to all the CA Member since all of them are not that much good at English. He suggested doing that in Nepali in the days to come.

- Shukdaya Chaudhary, CA Member (CPN-UMaoist)

She says that the commission that has nothing to do in reality should not be formed by government that is just a loss of money and wastage of time. She also brought the issue of Shuklaphanta Commission which was formed more than 20 years ago and argues that has not brought any reports and useful task. She strongly says that such useless commissions should not be formed.

Presenter: Prithvi Raj Ligal, Chairman, PRAD

- Bhaire Kami, CA Member (CPN-UML)

Who is responsible for making the programs and projects ineffective in Nepal? Is that Administrator, Policy makers or Ministers?

What are the weaknesses in the present budget system? Can RBB resolve these weaknesses?


Annex-4

Workshop Evaluation Form

Workshop on Budget making Process for CA members

November 27-28, 2010, Dhulikhel

Workshop Evaluation Form

Participant name:

CA member/ Party representative:

Name of Political Party representing:

1. How much you know about the budget before this workshop?

a. Know everything about budget.

b. knows about budget but don’t know about its importance.

c. Know about budget but don’t know its process.

2. How much you know about budgetary process?

a. knows when the budgetary process starts and completes.

b. Know how budget is prepared but don’t know about its process.

c. Don’t know when it begins and what its processes are.

3. What do you know about the role of different institutions in the budget making process?

a. knows about the role of different institutions in the budget making process.

b. Know about the involvement of the institutions but don’t know about their role.

c. Do not know anything about the role of the institutions.

4. How do you find the objective of the workshop?

a. The workshop is very effective in meeting its objective.

b. Good. Such program should be conducted time and again.

c. less than expected.

5. How do you find the contents of the presentation?


a. The presentation adequately covered different aspect of budget and its process.

b. Some important aspects are totally left by the presenter.

c. The contents seem more than required.

6. How do you find the presentation made by different speakers?

a. All presentation was very effective.

b. Some of the presentation was not very effective

c. The response of some of the presenter were not satisfactory

7. How do you find the time allocation for the presentation and the discussion in the workshop?

a. Very adequate for the presentation as well as for the discussion

b. The time allocation for discussion was too little and so not much discussion took place

c. The time allocation was too long for both presentation and discussion

8. What is your feeling regarding two days workshop?

a. Two days workshop is adequate

b. The workshop would have been more effective had we organized it in an intermittent manner

c. Two days workshop is too tiring

9. How do you found yourself at the end of the workshop?

a. Very effective. It enriches my knowledge about the role of the institution and the budget making process.

b. As I know about the process, it does not add up to my knowledge

c. It adds up my knowledge of the role of institutions in budget making and its process

10. Please suggest how the workshop could be made more effective?

a. program is good and you need to continue it bringing more people in the workshop

b. program is ok but you need to revise it based on this workshop experience

c. program is not good. We could not benefit much

11. Please evaluate the workshop in brief.


Documents

Budget Making Process and Role of Different Government ...prad-nepal.com/add_study/dhulikhel_workshop_ca.pdf · Budget Making Process and Role of Different Government Agencies in