A Deep Dive into the Budget-Making Tradition and Process

Published on May 28, 2025

Each year on Jestha 15 the Government of Nepal unveils the national budget, a crucial document that charts the country's economic, development, and policy roadmap for the upcoming fiscal year. Despite the legal provision allowing for flexibility in presentation time from midnight to 11:59 PM on the designated day, the government has consistently chosen the late afternoon—typically around 4 PM or later—to present the budget. But why not at 10 AM?

This has become a point of growing public curiosity and criticism. To understand the timing tradition, it's essential to examine the history, constitution, logistics, and administrative process surrounding budget formulation and disclosure in Nepal.

Constitutional Provision vs. Practice

Article 119 of the Constitution of Nepal (2015) mandates the government to present the annual budget in a joint sitting of the Federal Parliament on Jestha 15. While it does not specify a fixed time of day, it allows any time between 12:01 AM and 11:59 PM. Despite this flexibility, the government has persistently opted for evening presentations.

Historically, before the 2015 Constitution, budgets were often presented during the final week of Ashadh (mid-July), often late in the evening—some even around 8 or 9 PM. This trend originated when Nepal was an agrarian economy, and 85% of the population was engaged in farming. The late-afternoon timing was set to accommodate farmers, ensuring they could attend to agricultural duties during the day and tune into the budget afterward.

This legacy persists even today—despite structural changes in the economy, urbanization, and technological advancements.

Public Impact and the Case for Change

This practice of revealing the budget late in the day imposes several inconveniences:

Public Wait Time: Citizens are forced to spend the entire day awaiting budget details—glued to their TVs and smartphones.
Analysis Bottleneck: Analysts, journalists, and economists get limited time to evaluate and disseminate the budget’s impact before the day ends.
Business Disruption: Customs offices across Nepal remain closed on budget day until after the announcement. Importers, customs brokers, and logistics professionals lose a day of operation.
Missed Opportunity for Engagement: A morning release would allow for broader citizen interaction and media analysis throughout the day—helping raise fiscal awareness and accountability.

Benefits of a 10 AM Budget Presentation

Efficient Time Management: Analysts, journalists, and stakeholders can dissect the budget over the entire day.
Higher Public Participation: Citizens can absorb, discuss, and react to the document in real time—aligning with democratic transparency goals.
Better Alignment with Global Practice: Most developed countries release budgets in the morning, providing markets and institutions adequate time to react.
Institutional Strengthening: Finishing all technical preparations earlier would demand better planning and administrative discipline from the government.

How Nepal’s Budget Is Built

The budget-writing process starts in Magh/Falgun (January/February). It follows a multi-phase approach:

Resource Estimation Committee Formation: Led by the Vice-Chair of the National Planning Commission, this committee estimates the available resources.
Ceiling Allocation: Based on resource estimates, ministries are given budget ceilings and must submit program proposals accordingly.
Drafting Committees: Multiple inter-ministerial and intra-departmental committees write the budget, evaluate feasibility, and finalize allocations.
Revenue Policy and Tax Rate Committees: Separate teams from the Inland Revenue Department and Customs draft tax measures, analyze policy impact, and forecast revenue implications.

By Jestha 14 (a day before budget presentation), the final drafts of both the budget statement and Finance Act are typically finalized after night-long discussions, often extending into the early hours of Jestha 15.

After printing, the budget is first presented to:

National Planning Commission (for final nod),
Cabinet meeting (for symbolic approval), and
Finally, to the Federal Parliament for formal presentation.

Time for a Policy Shift

While presenting the budget in the late afternoon is legally valid and rooted in historical logic, it now appears outdated and inefficient. Modern administrative capacity and digital tools should allow the Finance Ministry to finalize documents well in advance. Transitioning to a 10 AM budget presentation would:

Improve transparency and public engagement,
Reduce the collective stress and wait associated with budget day,
Align Nepal with international best practices, and
Enhance the credibility and responsiveness of the government.

The budget belongs to the people—not just to the policymakers. Its presentation time should reflect the public's convenience, not bureaucratic habit. The demand to move to a morning disclosure is more than symbolic—it is a call for citizen-centric governance.

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