DPM Paudel assures of addressing the recommendations of the High-Level Commission

 Kathmandu, May 13

Deputy Prime Minister and Finance Minister, Bishnu Prasad Paudel, said that the suggestions of the High-Level Economic Reforms Recommendation Commission (HLERIC) that could be addressed by the budget of the upcoming Fiscal Year 2025/26 would be included in the appropriation bill and appended bills.

"It’s a massive document, so all of the recommendations couldn't be included in the budget due to the limited availability of resources," said DPM Paudel while speaking at a conference on 'Roadmap for Economic Transformation' organised by the Confederation of Nepalese Industries (CNI) in Kathmandu on Tuesday evening,

He also urged the organiser and Chairman of the HLERIC Rameshwore Khanal to provide an abridged version of their suggestions including only those that should be addressed by the next budget.

The event was organised with the aim of implementing the report and suggestions of the HLERC which was led by former Finance Secretary Rameshwore Khanal and included the representatives from the private sector.

Khanal, Chairman of the HLERC, stressed on redesigning and reconstruction of the social security programmes, and checking the practice of announcing distributary budget and scattering the meagre resources available.

"Government and private sector both should mobilise their resources in close harmony so that it would contribute in capital formation and opportunity creation. We must crate trust-based system to achieve the national aspiration for development," he said.

According to Khanal, the country should adopt the macroecnomic economic policy to create economic opportunities, motivate stakeholders to create it and expand the access to opportunities should get priority.

He said that the suggestions like not transferring the high government officials for at least two years, prioritising and completing sick national projects and completing them withing the next five years, enhancing the capacity of the construction entrepreneurs, forming an Infrastructure Development Authority, and expediting and easing the Environmental Impact Assessment should be addressed through the budget of the next year.

To promote and attract domestic capital market and foreign direct investment in infrastructure, the viability gaps funding, minimum revenue guarantee, hedging mechanism, public private partnership, blended finance and BOOT (Build Own Operate and Transfer) should be promoted.

Khanal also stressed on the dismantling of the Revenue Investigation Department, opening FDI in agriculture, opening capital account convertibility, issuing new Information Technology Policy, and creating centres of excellence in universities.

Speaking on the occasion, former Finance Minister Dr. Prakash Sharan Mahat, suggested the Ministry of Finance (MoF) to first categorise the projects and programmes on the basis of the available resources or those that can be generated.

When the government delivers it promises, only then the public trust on it would be strengthened.

"The finance minister and the government must exhibit their courage to go against the populism and have evidence-based and time-bound planning for the national development," said Dr. Mahat.

Likewise, another former Finance Minister, Barshman Pun, said that the general mood of Nepali society has been pessimistic due to poor development delivery of the government.

"It means we have shortcomings in our policies and practices. They must be improved immediately and new phase of economic reform should be initiatied," he said.

According to him, the country needs a few transformative projects that would impact multiple sectors of the economy and social life.

Pun said that the country needs a long-term strategy for economic development which would stay even when the governments are changed.

Surendra Pandey, former Finance Minister, said the government has to opt for increased domestic borrowing to finance the development projects.

"As per the current economic scenario and size of the national economy, the finance minister should dare to manage at least Rs. 350 billion through domestic borrowing.

Stating that the Ministry of Finance now lacks the expertise and technical know-how of economic reforms and development, Pandey suggested for the promotion 'minimum government'.

"But we must be clear about the limiting the power of government in the economic and social affairs," he said while stressing on the powerful and effective oversight agencies.

Rajesh Kumar Agrawal, President of the CNI, said that policies must undergo timely amendment but they should always be progressive.

The government has expressed its willingness to implement the report and included its pledge in the pre-budget policy documents such as the Policies and Programmes for the Fiscal Year 2025/26 and Principles and Priorities of the upcoming budget of the next year. 

Published in The Rising Nepal daily on 14 May 2025.