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Nepal

Open Budget Survey 2017

Downloads:
Country Summary Questionnaire
Transparency

52

out of 100
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Public Participation

24

out of 100
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Budget Oversight

44

out of 100
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IBP considers countries that score above 60 on the Open Budget Index as providing sufficient budget information to enable the public to engage in budget discussions in an informed manner. IBP considers countries scoring above 60 on participation and oversight as providing adequate opportunities for the public to participate in the budget process and providing adequate oversight practices, respectively.

Transparency (Open Budget Index)

52

out of 100

Nepal provides the public with limited budget information.

How Has the Open Budget Index Score Changed Over Time?
Recommendations for Improving Transparency

Nepal should prioritize the following actions to improve budget transparency:

  • Produce and publish a Pre-Budget Statement and a Citizens Budget.
  • Provide detailed data on the macroeconomic forecast as well as data on the financial position of the government in the Executive’s Budget Proposal.
  • Increase the information provided in the In-Year Reports and the Enacted Budget.

Public Participation

24

out of 100

Nepal provides few opportunities for the public to engage in the budget process.

How Does Public Participation Compare to Other Countries in the Region?

Global Average 12/100
Nepal 24/100
Afghanistan 15/100
India 15/100
Bangladesh 13/100
Sri Lanka 11/100
Pakistan 6/100
Recommendations for Improving Participation

Nepal should prioritize the following actions to improve public participation in its budget process:

  • Actively engage with individuals or civil society organizations representing vulnerable and underrepresented communities during the formulation and monitoring of the implementation of the national budget.
  • Hold legislative hearings on the formulation of the annual budget, during which members of the public or civil society organizations can testify.
  • Establish formal mechanisms for the public to participate in relevant audit investigations.

Budget Oversight (by Legislature & Audit)

44

out of 100

The legislature and supreme audit institution in Nepal provide limited oversight of the budget.

To What Extent Does the Legislature Provide Budget Oversight?

Formulation/Approval 24/100
Execution/Audit 33/100

The legislature provides weak oversight during the budget cycle. This score reflects that the legislature provides weak oversight during the planning stage of the budget cycle and weak oversight during the implementation stage of the budget cycle.

To What Extent Does the Supreme Audit Institution Provide Budget Oversight?

Adequate 78/100

The supreme audit institution provides adequate budget oversight.

Recommendations for Improving Oversight

Nepal should prioritize the following actions to make budget oversight more effective:

  • Ensure the Executive’s Budget Proposal is approved by legislators before the start of the budget year.
  • In practice, ensure the legislature is consulted before the executive shifts funds between administrative units specified in the Enacted Budget during the budget year or spends any unanticipated revenue.
  • Consider setting up an independent fiscal institution to further strengthen budget oversight.

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The information on this page presents a partial country summary. For more detailed information, please download:


Open Budget Survey 2015

Downloads:
Country Summary - English Questionnaire

Transparency (Open Budget Index) 24/100

The Government of Nepal provides the public with minimal budget information.

Public Participation 19/100

The Government of Nepal is weak in providing the public with opportunities to engage in the budget process.

Budget Oversight

By legislature 18/100

Budget oversight by the legislature in Nepal is weak.

By auditor 75/100

Budget oversight by the supreme audit institution in Nepal is adequate.

Recommendations

Improving Transparency

Nepal should prioritize the following actions to improve budget transparency:

  • Publish consistently the Executive’s Budget Proposal in a timely manner.
  • Produce and publish a Pre-Budget Statement and a Citizens Budget.
  • Increase the comprehensiveness of the Year-End Report by presenting more details on planned versus actual debt and interest, as well as on the planned versus actual macroeconomic forecast.
Improving Participation

Nepal should prioritize the following actions to improve budget participation:

  • Establish credible and effective mechanisms (i.e., public hearings, surveys, focus groups) for capturing a range of public perspectives on budget matters.
  • Hold legislative hearings on the budgets of specific ministries, departments, and agencies at which testimony from the public is heard.
  • Establish formal mechanisms for the public to assist the supreme audit institution to formulate its audit program.
Improving Oversight

Nepal should prioritize the following actions to strengthen budget oversight:

  • Establish a specialized budget research office for the legislature to enable more robust discussions on the budget.
  • Ensure the executive receives prior approval by the legislature before implementing a supplemental budget.
  • In both law and practice, ensure the legislature is consulted prior to the virement of funds in the Enacted Budget, the spending of any unanticipated revenue, and the spending of contingency funds that were not identified in the Enacted Budget.

Open Budget Survey 2012

Downloads:
Country Summary - English Questionnaire

Open Budget Survey 2010

Downloads:
Country Summary Questionnaire

Open Budget Survey 2008

Downloads:
Country Summary Questionnaire

Open Budget Survey 2006

Downloads:
Country Summary Questionnaire



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