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Exploring Nepal’s New Directives for Financial Accountability in Health Ministry

Strengthening Efficiency and Accountability in Nepal's Health Sector Spending
mohp circular with letter

In a significant move to enhance financial accountability and optimize the effectiveness of government spending, the Ministry of Health and Population, Nepal, has recently issued a comprehensive directive. This directive aligns with the Economic Procedure and Fiscal Accountability Act 2076 (2019), specifically addressing the provisions in section 32 for enhancing financial control, intern

Key Highlights of the Directive:

  1. Efficient and Effective Public Expenditure:
    Ministries, departments, institutions, and hospitals under the Ministry of Health must strictly adhere to guidelines issued to manage and control spending, ensuring maximum efficiency.
  2. Monitoring and Evaluation:
    Activities requiring visits and monitoring must prioritize essential personnel only. Clear guidelines prohibit unnecessary participation, emphasizing austerity except in unavoidable situations.
  3. Unified Monitoring System:
    The establishment of an integrated monitoring system is directed, enabling comprehensive oversight by reducing redundant monitoring efforts and promoting collaboration among various entities.
  4. Immediate Implementation of SMT Recommendations:
    All institutions are mandated to immediately implement recommendations issued under SMT letters dated 2081-11-15.
  5. Budget Restriction Guidelines:
    Following the Ministry of Finance directive numbered 450, institutions must maintain a reserve of 25% from their remaining budgets in specified expenditure headings, thereby preventing unnecessary expenditures.
  6. Priority to Essential Activities:
    Ministries and internal departments must prioritize essential pending activities, clearly distinguishing compulsory tasks from those that can be deferred. A report detailing these prioritized tasks is required within 7 days to the Policy, Planning, and Monitoring Division of the ministry.

Official Document Download

Access the full details of this important circular directly from the MoHP website:

Download the MoHP March 11, 2025 Circular Here



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