The first 100 days of any government are typical, as during this period the government tries to set its feet, creates indications for policy and structural reforms, and learns the nitty-gritties of governance. It is termed the 'Honeymoon Period' because the government has leverage of 'public doubt' and goodwill, less criticism from the media and less resistance and attacks from the opposition parties. It is the time the government or the ruling party sets the course for the future and reveals its priorities and assertiveness for reform.
However, these 100 days are not enough to exhibit major transformation in policy, economy, or society. But the government, led by Prime Minister Balendra Shah with Dr. Swarnim Wagle in the driver's seat of the economy, has made ambitious attempts for governance, reforms, economic recovery, boosting private sector confidence, and digital transformation to implement long-term structural change.
The government has set an ambition to build a Rs. 10 trillion economy by 2030. FM Dr. Wagle has said that rather than focusing solely on fiscal consolidation or immediate growth, the government has framed its economic agenda around expanding Nepal's productive capacity through energy generation, tourism, information and communication technology (ICT), agriculture, infrastructure development and institutional reform. With the announcement of '100 programmes for 100 days,' the government had clearly said that it had accorded priority to good governance, administrative reforms, economic growth, and private sector confidence.
But although macroeconomic indicators have improved over the past year with sufficient foreign exchange reserves, satisfactory export growth, and enough liquidity in the financial system, the private sector is facing declining demand, credit growth is poor, and investment and business confidence is at the bottom.
To reverse this scenario, the Ministry of Finance is operating in 'mission mode' and is replacing lengthy and cumbersome bureaucratic processes with swift decision-making and adoption of digital technology. Projects are being monitored digitally while clear performance indicators are set to strengthen institutional accountability. Administrative procedures are increasingly being moved online in an effort to reduce delays, improve transparency, and minimise opportunities for corruption.
Instead of organising physical meetings and conferences to solicit suggestions on the government's policy and programmes and budget, the government launched a digital portal for the same so that all Nepalis living at home and abroad could equally participate in the policy making and budget formulation.
Several outdated laws and regulations that have been obstructing the growth of the private sector, economy, and development were amended or repealed. Since the government implemented this policy reform as per the demand of the private sector, it is expected to boost the morale of the investors and businesspersons. The government has also decided to postpone Nepal's graduation to 'developing country' status from 'least developed country,' which was due in November 2026. The process will be delayed for three years until 2019, providing time for the government and private sector businesses to prepare for the upgrade.
Enhancing transparency
Through the budget of the fiscal year 2026/27, the government increased the slab of personal income tax, which will give relief to the lower middle and middle classes. The salary of civil servants has been increased by 20 per cent. Tax rates for higher earners are also reduced. Digitalisation of tax administration and a provision that requires businesses with annual turnover exceeding Rs. 200 million to join the Central Invoice Monitoring System are expected to check revenue leakage.
FM Dr. Wagle reduced customs duties on 273 types of raw materials to make sure that the tariff on industrial raw materials is one level lower than that on the finished goods. He also announced amendments to company law to facilitate the process of dissolving companies while ensuring clarity on issues such as conflicts of interest and disclosure of information.
The Ministry of Finance has launched an electronic pension verification system, benefiting over 350,000 pensioners and saving about Rs. 150 million through the elimination of bank commission and administrative costs. Similarly, the MoF has piloted a salary distribution every fifteen days.
Likewise, in an effort to enhance fiscal discipline, fuel allowances for senior government officials have been reduced, and overtime allowances for the officials of the Nepal Oil Corporation are being checked with the implementation of shift-based working hours.
Infrastructure reform
In infrastructure development, the government has given priority to complete the priority projects. National pride as well as the priority projects have received the increased attention of the finance minister, the home minister, and the concerned line ministries. Legal amendments have been made to facilitate environmental assessments and tree-felling approvals. The Public Procurement Act and its regulations have also been amended to streamline and shorten procurement procedures. The government has also ensured the stability in the tenure of project chiefs and other key personnel. Meanwhile, the Appropriation Act, 2082 and the Financial Procedures and Fiscal Responsibility Regulations, 2077, have been amended to delegate authority to line ministries to allocate funds within the capital budget.
The government has allocated an adequate budget for the forthcoming fiscal year for the national pride projects, supported by a clear roadmap for their completion. Resources have been allocated, and legal as well as procedural simplifications have been introduced to ensure that these projects are completed within the stipulated timeframe.
Legal and institutional reforms have also sought to improve conditions for foreign direct investment, with greater emphasis placed on economic diplomacy and engagement with multinational companies. The restructuring of the Nepal Stock Exchange and reforms to capital market governance likewise signal an intention to strengthen domestic capital mobilisation.
With a strong rise in remittance inflows, robust foreign exchange reserves, a current account surplus, and a strengthened balance of payments, the country is in greater macroeconomic stability. This has given both the government and private sector greater confidence to implement reforms and push forward the developments to achieve economic growth of 7 per cent and contain inflation below 6 per cent.
Published in The Rising Nepal daily's supplement on 4 July 2026.
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