Fiscal Council decides to raise financial equaliation grant

Kathmandu, Apr. 16

The Inter-Governmental Fiscal Council (IFC) has decided to increase the financial equalisation grant in proportion to the growth of the federal budget while improving the fiscal transfer and grant system. 

It also decided to adopt a policy of gradually reducing conditional grants provided by the federal and provincial governments.

"To end the trend of fragmenting budgets into small projects and duplication, budget allocation arrangements shall be made according to the prescribed 'threshold' (minimum limit) for development projects," the meeting of the IFC and thematic committees held at the Ministry of Finance (MoF) on Thursday concluded.

These decisions are made to strengthen fiscal federalism, according to the MoF.

For allocative efficiency and capital expenditure effectiveness, all three levels shall mandatorily implement the concept of a 'project bank' while the National Planning Commission (NPC) shall manage the integration of the project banks of the three levels.

The MoF informed in a statement that the meeting agreed in ending the practice of keeping budgets in 'unallocated' categories, identifying and scraping or settling old 'sick' projects, and ensuring that federal, provincial, and local levels distribute annual programmes and projects in an activity-wise manner during budget formulation.

An agreement also made on reducing the economic liability of the state's recurrent expenditure while all three levels of government expressed their consent to strictly implement austerity policies.

All three levels of government shall emphasise reducing arrears and accelerate settlements by preparing classified details of arrears with a time-bound action plan.

The IFC meeting took notice of the hurdles in acquiring land needed to construct administrative buildings of the provincial governments and mobilising forest-based products and river-based materials, and decided to implement the annual budget and programmes of provincial and local levels and to accelerate the construction of administrative buildings and other government physical structures.

They will request the Office of the Prime Minister and Council of Ministers (OPMCM) for necessary coordination to address existing legal complexities and procedural delays in Land Acquisition.

Similarly, to increase the internal revenue of the federal, provincial, and local levels, request would be made to the OPMCM, the Ministry of Federal Affairs and General Administration, and the Ministry of Forests and Environment to remove legal, policy, and procedural hurdles regarding the sustainable and systematic utilisation and mobilisation of forest-based products and river-based materials, and to facilitate their collection and sale.

The three levels of government agreed to work in accordance with the spirit of federalism, focusing on service delivery and good governance so that citizens can directly experience the impact. They also implement a new formula to increase the share of local levels in royalties from electricity, mountaineering, forests, and mines, based on the recommendations of the National Natural Resources and Fiscal Commission (NNRFC).

Likewise, the meeting decided to coordinate between the three levels of government to control revenue leakage. Each level will prepare and implement a 'Revenue Collection and Leakage Control Improvement Action Plan' within the current fiscal year 2025/26 (or within the next three months) to prioritise internal resource mobilisation.

The Finance Ministry said although the rule-based system of fiscal transfer in Nepal has been institutionalised, the meeting focused on addressing the practical complexities observed in the performance capacity and resource management of the tiered governments.

Speaking at the meeting, Finance Minister Dr. Swarnim Wagle stated that the federal government has taken the legitimate demands regarding fiscal transfer and autonomy put forward by the provincial finance ministers positively.

He expressed concern over the increasing 'grant-oriented' trend where lower levels remain dependent on federal grants due to weak revenue capacity. He committed to making this Council result-oriented by ending financial deviations.

Furthermore, the FM Dr. Wagle assured that the government would take concrete policy and legal reform steps in the coming days to make fiscal transfers more transparent, predictable, and equitable.

The meeting was attended by ministers for Economic Affairs and Planning from all seven provinces, ex-officio and expert members of the Council, the vice-chairman of the NPC, acting chairman of the NNRFC, finance secretary, secretaries from various ministries, deputy governor of Nepal Rastra Bank, and other high-ranking officials.

The provincial finance ministers and members expressed confidence that this meeting of the Council would be instrumental in resolving the policy and practical complexities observed in fiscal transfer and revenue sharing.

Published in The Rising Nepal daily on 17 April 2026.       

Baahrakhari Golf, Symposium to be held in Kathmandu

Kathmandu, Apr. 16

The ninth edition of the ‘Ncell Business Baahrakhari Invitational Golf Tournament’ and the ‘Economic Symposium’ will be held in Kathmandu this year.

Baahrakhari Media announced at a press conference in Kathmandu on Thursday that both events will take place on May 2 at Gokarna Golf Course.

Indian bureaucrat Amitabh Kant will attend the symposium as the keynote speaker. He is the Chancellor of MITT University and former CEO of NITI Aayog.

Speaking at the press conference, Baahrakhari Media Editor-in-Chief Pratik Pradhan said Finance Minister Dr. Swarnim Wagle will attend the symposium as chief guest and deliver a special address. Former Finance Secretary Rameshwor Khanal will present a working paper at the event.

Pradhan said the programme aims to link sports and the economy by organising a golf tournament alongside an economic discussion.

Sulabh Bista, Head of Enterprise Business Sales at Ncell, expressed hopes that the event would add new dimensions in connecting sports and economy.

Yamuna Shrestha, Managing Director of Cimex Inc., the authorised distributor of BYD vehicles in Nepal, said the event connects sports and the economy in a practical way. She added that such programmes also provide relief for those experiencing stress in business.

Likewise, Gokarna Golf Club Chairman Suhrid Ghimire said developing sports as an industry could also support tourism.

Sudiksha Adhikari, Brand Manager of Khukuri Rum under Nepal Distillery, said the platform helps raise policy issues with the government, including duty-free facilities at airports and export incentives. She added that the liquor industry contributes significantly to employment and government revenue.

According to Deepak Acharya, Director and Secretary of Gokarna Golf Club, more than 100 invited players will compete, including men, women and senior players aged above 60.

The winner will receive a gold ball, while a BYD Atto 3 car will be awarded for a hole-in-one.

Acharya also highlighted the potential of golf tourism, noting that while an average tourist in Nepal spends USD 20–30 per day, a golf tourist can spend between USD 500 and 1,000 daily.

Published in The Rising Nepal daily on 17 April 2026.       

Community-Led Water Innovation among top three at WAFA Global

Kathmandu, Apr. 16

Nepal’s community-driven water innovation project has been selected among the top three finalists in the Water category of the Water, Air, Food Awards (WAFA) 2026.

The initiative, led by Dr. Datta Bahadur Rawal under the Partnership for Sustainable Development Nepal (PSDN), represents a major milestone for Nepal in advancing grassroots environmental solutions. The WAFA Global Awards is an internationally recognised platform that honours innovative, community-led responses to some of the world’s most urgent environmental challenges.

According to PSDN, the project focuses on ensuring water security for marginalised and underserved communities across Dang, Jumla, and Nawalparasi districts. Designed as an integrated Water, Sanitation, and Hygiene (WASH) model, the initiative combines safe drinking water systems, improved sanitation infrastructure, hygiene education, and environmental restoration, read a statement published by the organisation.

Through this approach, water treatment systems have been installed in schools and local communities, significantly improving access to safe drinking water and promoting dignified sanitation services for populations previously deprived of these essential resources.

The WAFA 2026 competition features 12 outstanding initiatives from 10 countries across five continents, selected under categories including Water, Air, Food, and Youth Climate Action. Each finalist represents a scalable and impactful solution capable of transforming lives globally.

Public voting for the awards is currently open and will continue until April 30. Winners will be announced during the Generation Green Forum, to be held at the National Museum of Egyptian Civilisation in Cairo, Egypt, in Summer 2026.

Published in The Rising Nepal daily on 17 April 2026.       

SY Panel begins installation of new UPVC plant

Kathmandu, Apr. 15

SY Panel Nepal, a subsidiary of SY Company Limited, has laid the foundation stone for a new UPVC industry in Ratnanagar Municipality–14, Pithuwa, in Chitwan.

The foundation was jointly laid on Monday by Ratnanagar Mayor Pralhad Sapkota and the company’s CEO Hong Sung-bu during a formal ceremony.

Speaking at the event, Mayor Sapkota said the municipality would facilitate investors willing to establish industries in the area. "While local authorities would provide necessary support, priority in employment should be given to local residents," he added.

Once operational, the plant is expected to produce UPVC door and window profiles and other construction materials using advanced technology. According to the company, UPVC products are considered a durable, lightweight and environmentally-friendly alternative to traditional wood and metal materials, and the decision to establish the factory was based on growing market demand in the country.

Hong said the factory represents a combination of Korean technology and Nepal’s workforce, adding that it would serve as a centre for industrial development. He said that the project would help strengthen economic cooperation between Korea and Nepal and contribute to the development of Chitwan.

He also noted that Nepal is entering a phase of political stability and economic opportunity, and said the company aims to support job creation and technology transfer in collaboration with the government.

The company recently issued an initial public offering (IPO), and said the funds raised are being utilised for the establishment of the uPVC plant. The estimated cost of the project is Rs. 560 million.

The company aims to complete construction within six months and begin production thereafter. It expects that domestic production of such materials will reduce dependence on imports.

SY Panel Nepal has been producing panel products in Ratnanagar since 2017 and plans to expand its industrial presence and network.

Published in The Rising Nepal daily on 16 April 2026.       

Government unveils commitment including pledges of six major parties

 Kathmandu, Apr. 14

Including the plans and aspirations of the manifestos, pledges and commitment of the six major political parties participating in the election held in March this year, the government has formulated a National Commitment for the reforms in governance to make the economy more competitive, inclusive and resilient.

It said that the economy will be driven by private sector, governance efficiency, digital transformation and global information while ensuring social equity and environmental sustainability.

According to the document made public on Monday evening, for the economic stability and reforms, the government aims to harness Nepal's youth-centred demographic dividend to drive structural transformation and achieve middle-income status through productive-led growth.

Private sector will act as the engine of the growth while the government's role will be limited to regulation, facilitation and policy stability.

The government also said that it will eliminate rent-seeking, policy capture, cartels and artificial shortages to ensure fair competition, entrepreneurship and business-friendly environment. It is set to introduce predictable tax policies (at least 10-year stability) and simplify procedures through paperless digital systems, improving investor confidence.

"For economic transformation, a time-bound Economic Charter will be established with national consensus among major political parties. Through the formulation and implementation of national and sectoral policies aimed at capital formation, job creation, export growth, and overall macroeconomic stability, Nepal will be positioned as a respectable middle-income country," read the document.

Over the next five years, an average economic growth rate of seven per cent will be achieved, raising per capita income to US$ 3,000 and bringing the gross domestic product close to US$ 100 billion.

To increase tourism arrivals, length of stay and per capita spending, the sector will be diversified through nature, culture, community-based and wellness tourism ecosystems to offer better local experiences.

 

30,000 MW electricity in a decade

In order to achieve a target of 30,000 MW of electricity generation capacity over the next decade, legal revisions and policy reforms will be undertaken in areas such as land, forests, and the environment. The government will provide viability gap funding and prioritise the construction of large reservoir and semi-reservoir projects such as Budhigandaki and Dudhkoshi, read the document.

Likewise, energy-based large industries—such as steel, cement, herbal processing, data server stations, and chemical fertiliser plants—will be promoted. Alongside electricity generation, private sector participation will also be encouraged in storage, transmission, and distribution systems through investor-friendly policies and legal frameworks.

An integrated plan for energy development will be formulated, and energy production and resource mobilisation will be carried out through public–private partnerships.

"Through energy diplomacy, bilateral and regional cooperation will be strengthened, and energy trade will be expanded with neighbouring countries such as India and Bangladesh," read the document.  

 

PPP to get a priority

The government is also set to develop an investment-friendly mining policy framework including public-private partnership models. Scientific and exploration will be conducted to attract investment in high-value mineral extraction and procession while extraction of construction materials will be regulated in line with environmental safeguards and export potential.Top of Form

Likewise, the government stated that it will prevent staff transfers until project completion to implement result-based implementation of development projects. It will prioritise high-impact national projects aligned with development goals avoiding politically driven allocation and incorporate climate resilience and environmental sustainability into all development projects.

It said that it will launch large-scale green infrastructure projects to generate employment, and create jobs in IT, tourism, construction and commercial agriculture. The government aims to crate 1.5 million jobs within five years.

 

Balanced foreign policy

The government has prioritised a balanced and dynamic foreign policy, emphasising Nepal’s sovereignty, territorial integrity, and national interest. The document read that shifting global geopolitics and the rise of neighbouring powers will be leveraged as opportunities for development. A new performance audit system will be introduced to evaluate the effectiveness of diplomatic missions, ensuring accountability and results-oriented engagement.

Likewise, transforming Nepal from a traditional 'buffer state' into a 'vibrant bridge' that facilitates regional connectivity and trilateral economic partnerships has gained priority. Maintaining neutrality, Nepal will continue to avoid military alliances while promoting peace and cooperation.

Protection of Nepali migrant workers’ rights, safety, and social security will also remain a priority. Economic diplomacy and international platforms like Sagarmatha Dialogue will be accorded priority.

Similarly, the government aims to harness the potential of the Nepali diaspora. Legal provisions will ensure citizenship continuity, property rights, and voting rights for Non-Resident Nepalis (NRNs). 

Published in The Rising Nepal daily on 15 April 2026.       

Property details of PM, Ministers made public

Kathmandu, Apr. 12

The Office of the Prime Minister and Council of Ministers (OPMCM) has published the property details of the ministers of the government.

In a statement on Sunday, the Office said that the details were published as per the Cabinet decision in line with the Article 50 of the Prevention of Corruption Act, 2059.

According to published details, Prime Mister Balendra Shah has land in Kathmandu and Dhanusha and Mahottari registered in the name of his family members.

He has a bank balance of Rs. 14.6 million which, according to him, is earned from YouTube and other social media platforms. He has 4 million followers on Facebook, 1.2 million on YouTube and 500,000 on X.

Details of property owned by the ministers can be viewed on or accessed from www.opmcm.gov.np. 

Published in The Rising Nepal daily on 13 April 2026.       

Governments stress inter-provincial cooperation in agriculture sector

Kathmandu, Apr. 12

Provincial officials have said that the sub-national governments are struggling to achieve development targets in agriculture amidst lack of budget and human resource crunch, and pragmatic planning.

Speaking at an interaction on 'Interprovincial relation and cooperation in agriculture sector' organised by Federalism and Localisation Centre (FLC) in Lalitpur on Sunday, they stressed on integrated planning, resource mobilisation and market development for agricultural produces.

Keshav Devkota, Joint Secretary of the Ministry of Agriculture and Livestock Development (MoALD), said that roughly 60 per cent of the budget allocated for agriculture is spent on fertilizer.

While development work should be executed in coordination among the three levels of the government, some programmes at province-level are merely copied from federal plans without context-specific customisation.

"The main challenge is one of decreasing resources paired with an increasing number of institutions," said Devkota.

Hari Prasad Pandit, Senior Agriculture-Economic Expert and head of Planning Department in Lumbini Province, shared that despite agriculture being a priority, Lumbini Province has only 38 per cent staff recruitment of the total required staffs.

The provinces receive less than 9 per cent of the total budget, while the federal government spends heavily on fertilisers. Investment in agriculture has declined by 3.46 per cent this year, with uneven provincial allocations.

Pandit said that the absence of a Federal Agriculture Act has stalled provincial and local legislation, caused audit biases and forced Lumbini to seek a grant act instead. The lack of expertise also causes problems. For example, in Lumbini Province, a cold store built for orange failed as the facility was suitable for potatoes only.

The produces kept rotting for three years. Meanwhile, given the huge electricity bills the farmers are not willing to use the cold store which requires 100 per cent electricity subsidy, said Pandit.  

Minister for Agriculture and Livestock Development Minister of Bagmati Province Madhusudan Poudel appreciated the achievements of provinces in agriculture sector.

“Agriculture is critical for local employment, yet Nepal faces the challenge of cheap cross-border products undercutting high-cost domestic agricultural production," he said.

While Bagmati Province has banned plastic flowers and runs a cold store, the federal government continues to buy milk from India despite an existing local powder plant. "To address these issues, the federal government should subsidise the electricity bills of cold store and prioritise preserving and utilizing national production," said Minister Poudel.

Likewise, Manjari Shakya Bajracharya, Deputy Mayor of Lalitpur Metropolitan City, said that the governments must take integrated data seriously, reduce legal hurdles, protect agricultural land, stop using fertilisers that developed countries discard.

Arjun Dev Jnagwali, Agriculture Extension Officer, Ministry of Land Management, Agriculture and Cooperative Development of Gandaki Province, said that the technical staffs are acting as administrative.

Dr. Khim Lal Devkota, Chair of FLC, presented a paper highlighting the significance of interprovincial learning and cooperation in agriculture sector.

Published in The Rising Nepal daily on 13 April 2026.