Budget Analysis Tool Developer (Consultant)

TERMS OF REFERENCE (ToR)

Consultancy for the Development of Local Government Budget Analysis Tool

Public Designation: Budget Analysis Tool Developer (Consultant)

Project: Civil Society Empowerment for Accountable Education (CSE) Project

Organization: Karkhana Samuha

Report to: Program Manager

Location: Kathmandu, Nepal

Duration: End of January 2026

Pay Range: Based on concept notes and financial proposal

Application Deadline: December 7, 2025

1. Background:

Karkhana Samuha is implementing the “Civil Society Empowerment for Accountable Education (CSE) Project”. The project promotes civil society engagement to boost transparency, accountability, and inclusivity within Nepal’s education sector. As part of our engagement with stakeholders at the policy level, we are working towards bringing a diverse group of Civil Society Organizations (CSOs) and development partners to form an integrated education mechanism system (Learning Collaboratives) to promote transparency and accountability in the National Education Policy and its implementation. We want to collectively strengthen our capacity to advocate for educational policy change and to monitor its implementation. This initiative of Karkhana Samuha, supported by the Global Partnership for Education (GPE) through the Education Out Loud (EOL) program, seeks to empower CSOs with the knowledge, skills, and strategies necessary to advocate for inclusive and innovative education policies.

Project Goal/Impact: Improved transparency and accountability in national education sector policy and implementation, resulting in more equitable, inclusive, and resilient education systems.

Since the Constitution of Nepal 2015, the country has adopted a federal structure with one federal government, seven provinces, and 753 local governments. Local governments now play a central role in planning, financing, and implementing development activities, and local government spending has reached around 8.4 percent of GDP in FY 2023. Despite this, many local governments are still in the early stages of institutional development. Citizens in several areas have not yet experienced the expected improvements in governance, transparency, and service delivery. The World Bank has estimated that local governments underspent at a rate of 24.4 percent in Fiscal Year 2023, indicating weaknesses in budget planning and execution.

Civil society organizations (CSOs), local advocacy groups, journalists, and citizens face multiple barriers in accessing and analyzing local budgets, including lack of standardized, user-friendly data, limited analytical capacity, and weak mechanisms for citizen engagement in budget monitoring.

To respond to these gaps, this assignment aims to develop a simple, practical, and user-friendly Spreadsheet-based Local Government Budget Analysis Tool with an accompanying User Guide that will help CSOs analyze local government budget data and use the findings for evidence-based advocacy. The tool will be applicable across sectors, with a particular focus on the education sector.

2. Objective of the Assignment:

Overall Objective

To develop a simple, user-friendly Spreadsheet-based Local Government Budget Analysis Tool, and a User Guide, that enable CSOs to access, analyze, and interpret local government budget information for evidence-based advocacy, especially in the education sector.

Specific Objectives

• Design and develop a Spreadsheet-based budget analysis tool with automated calculations and basic dashboards.
• Develop a concise User Guide that explains data entry, key outputs, and how to use the tool for advocacy.
• Pilot test and validate the tool using data from selected local governments and refine it based on feedback.

3. Scope of Work:

The consultant will:

3.1. Framework Design

• Conduct a brief desk review of existing budget analysis tools and relevant documents.
• Identify and define key indicators and dimensions, including:
  • Sectoral allocations (with focus on education);
  • Gender and Social Inclusion (GESI) allocations;
  • Recurrent vs. capital expenditure;
  • Allocation vs. actual expenditure (underspending/overspending);
  • Sources of revenue (own-source, grants, transfers);
  • Simple trend and per capita indicators, where feasible.

3.2. Tool Development (Excel)

• Design a Spreadsheet-based tool with:
  • Input sheets for raw budget and expenditure data;
  • Calculation sheets with relevant formulas;
  • Simple dashboards (tables/charts) to visualize trends and gaps.

Use clear labeling and color-coding for input and output cells to make the tool accessible for non-technical users.

3.3. Pilot Testing and Validation

• Populate and test the tool using publicly available budget data from 2-4 selected local governments.
• Check the accuracy of calculations and usability of the interface.
• Collect feedback from selected CSO users (and, where possible, local officials) and refine the tool.

3.4. User Guide Development

• Prepare a short (illustrated) User Guide (in English and/or Nepali as agreed) that:
  • Describes the sheets and main functions of the tool;
  • Explains how to enter data and read outputs;
  • Provides simple examples of how findings can support advocacy (e.g., identifying low education allocation, underspending, or weak GESI focus).

4. Methodology:

The consultant is expected to propose a concise but clear methodology. At minimum it should include:

Design & Development:

• Desk review and development of the analytical framework.
• Stepwise construction of the Excel tool and internal testing.

Pilot & Refinement:

• Pilot testing with real data from selected CSOs via virtual.
• Collection of feedback from users and refinement of the tool and guide.

Finalization & Orientation:

• Submission of the final tool and User Guide.
• Brief in-person orientation for key CSOs/Learning Collaborative partners.

5. Key Deliverables

The consultant will deliver:

1. Inception Report
2. Draft Spreadsheet-Based Local Government Budget Analysis Tool.
3. Pilot-Tested and Finalized Tool incorporating feedback.
4. User Guide (illustrated, in agreed language(s)).
5. Brief Orientation/Presentation Materials (e.g., PowerPoint slides).

6. Timelines of the Research:

The assignment is expected to be completed by the end of January 2026.

7. Competencies and Eligibility of the Resource Person

Qualifications

• Master’s degree in Economics, Public Finance, Public Policy, Development Studies, Statistics, Data Science, or a related field.
• Minimum 5 years’ experience in public financial management, budget analysis, local governance and/or fiscal federalism (preferably in Nepal).
• Demonstrated experience in developing Excel-based analytical tools and dashboards.
• Experience working with CSOs and/or government bodies on budget transparency, accountability, or sector financing (education an asset).
• Strong understanding of Nepal’s public finance and local government budget processes.
• Advanced Excel skills (formulas, pivot tables, charts, conditional formatting).
• Ability to simplify complex budget information for non-technical users.
• Strong communication skills in English and Nepali.

Application Process:

Qualified and Interested candidates should submit the necessary documents as mentioned below to hr@karkhanasamuha.org.np with the subject line: Application for Budget Analysis Tool Developer (Consultant) by December 7, 2025. Applications that do not follow these instructions will be disqualified.

1. Application with eligibility statement (one-pager)
2. Research Concept note with financial proposal per day rates for the services
3. Updated Curriculum Vitae (CV)