Legal Outlook of Fiscal Operation in Nepal

Abstract

No legal person can be operated on without a legal mandate. As the State and its body are part of a legal person, they can perform their task only based on legal provisions. As fiscal operation is an important function of state machinery, the state enacts laws for revenue, expenditures, domestic and foreign aid, foreign investment, etc. Even the political and legal picture of the country determines budgetary policy and its operation. The country's fiscal operation has been done by operationalizing legal mandates under principal and delegated legislation. The prevailing constitution of Nepal is the steppingstone for fiscal policy in Nepal, which has followed a socialism-oriented liberal market economy policy. Based on the constitutional provisions, various revenue, expenditure, and auditing-related laws have been enacted. Together with the budget, the Appropriation Act, Supplementary Estimates Act, Votes of Account Act, Votes of Credit Act, and Contingency Fund Act are enacted as per necessity and other revenue-related laws are also amended to make them compatible with newly issued budget statements each year.