Legal Outlook of Fiscal Operation in Nepal

As State and their body are the part of legal person, they can perform their task only based on legal provision. As the fiscal operation is important function of state machinery, 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. Fiscal operation of the country has been done through the operationalization of legal mandates under principal and delegated legislation. Prevailing Constitution of Nepal is the stepping stone for fiscal policy for Nepal which has followed 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, Appropriation Act, Supplementary Estimates Act, Votes of Account Act, Votes of Credit Act, Contingency Fund Act are enacted as per necessity and other revenue related laws are also amended each years.