Showing posts with label Governance. Show all posts
Showing posts with label Governance. Show all posts

Saturday, August 22, 2026

Government to develop, supervise Software for public institutions

Kathmandu, Aug. 21

The government has moved ahead to create an institutional structure to domestically develop software for the public institutions and provide policy guidance to them.

A meeting of the Cabinet on Wednesday has approved the Software Development and Operation Committee (Formation) Order, 2083 for the same.

It has paved a way to establish a Software Development and Operation Centre (SDOC) that will supervise its activities, to make public service delivery information technology-based through the development, upgrading, necessary maintenance and other related work of software used by public bodies.

According to the PMO, the Order provides for the formation of a six-member committee, chaired by the secretary responsible for governance affairs at the Prime Minister's Office.

"The committee will provide policy guidance to the centre. It will have a 6-member expert committee, led by a secretary of the PMO, to supervise the software used in the public agencies," Spokesperson of the PMO Hemraj Aryal informed at a press meet held on Thursday.

The SDOC will be led by an executive director and will have 30 employees, including a gazetted first-class officer from the relevant service. Aryal said that additional staff will be appointed according to the need.

According to the order, the centre will undertake software development, upgrading and maintenance work as requested by public bodies. It will also upgrade and maintain software systems developed by the centre itself, as well as various legacy software systems requested by public bodies.

Similarly, the centre will provide round-the-clock technical support for various software systems developed by it.

"The order further states that, during software development, maintenance and upgrading, the centre must make appropriate arrangements for the secure hosting, processing, backup, access control and technical protection of data," the Prime Minister's Secretariat informed.

PMO directs to use domestic goods

The PMO issued a letter on Friday requesting all public bodies - including federal ministries, commissions, secretariats, provincial governments, local governments and Nepali diplomatic missions abroad - to give priority to Nepali products in their procurement processes.

At the direction of Prime Minister Balendra Shah and following recent consultations with domestic entrepreneurs and businesspeople, the PMO has requested all government agencies to use domestically produced goods and services.

The move has been taken to ensure the full implementation of existing legal provisions governing public procurement, said Aryal.

"The government has taken this initiative to strictly enforce existing legal provisions with the objectives of increasing the contribution of domestic production to the national economy, substituting rising imports, promoting domestic products, protecting local skills and entrepreneurship, and creating employment opportunities within the country," he said.

In line with the request from the PMO, government offices will now be required to make arrangements to use Nepali handicraft products, wherever possible, for meetings, ceremonies, souvenirs, gifts and decorative items.

However, such goods must be procured in accordance with the Public Procurement Act, 2063, and other prevailing legal provisions, while ensuring standards relating to availability, quality, price and safety.

In addition, public bodies will be required to explicitly mention the priority to be given to domestic products when preparing tender documents.

Responding to the sustained demand from the private sector entrepreneurs and business associations, the government had implemented the Directives for the Use of Domestic Products in Public Institutions in 2014.

The policy couldn't make any impact and the government came up with a new edition of the policy in 2024 but public institutions received it coldly.

While the public entities must purchase local goods, as far as they are available. However, such goods should be produced locally and should have obtained 'Nepal Standard' and the manufacturers should be registered with the government and. 

Published in The Rising Nepal on 22 August 2026.   

Tuesday, August 18, 2026

Committee begins work to address Gen Z movement related demands

Kathmandu, Aug. 14

The government has formed a special coordination committee and begun work to address the demands of those injured in, and the families of those killed during, the Gen Z movement on 8 and 9 September 2025.

The Gen Z Agreement and Integrated Package Implementation Coordination and Facilitation Committee, formed under the coordination of Joint Secretary and Spokesperson of the Prime Minister's Office (PMO) Hemraj Aryal, will play a key role in implementing and coordinating the agreements reached between the government and the protesting side, said the Office. The committee has already held its first meeting.

According to the PMO, the committee has been entrusted with reviewing progress on the effective implementation of the agreement reached between the government and Gen Z representatives on 10 December 2025, as well as the Integrated Package on Coordinated Rehabilitation, Livelihood and Social Protection for Families of Gen Z Movement Martyrs and the Injured, approved by a Cabinet decision of 2 July 2026.

The committee will ensure coordination among various ministries for implementation of the package, said Aryal at a press meet held in Singha Durbar on Friday afternoon.

He said that the committee will serve as a direct point of contact for those injured in the movement and the families of those killed. In accordance with the provisions of the Cabinet-approved package, the committee has been mandated to coordinate and facilitate with various government agencies to implement sensitive issues affecting the families, including education, healthcare and employment.

The committee will identify necessary remedial measures and recommend them to the relevant agencies to address practical problems or complications that may arise during implementation of the agreement and package.

In carrying out its mandate, the committee may invite government or non-government representatives and subject experts to discussions and meetings. The committee includes Under Secretary-level representatives from seven ministries, including the Home and Finance ministries, as well as representatives from the Gen Z Martyrs' Family Welfare Society and Injured Gen Z Nepal, and head of the Provincial Coordination, National Security and Diplomatic Affairs Section at the PMO, Under Secretary Basudev Khanal.

 

Govt imposes tighter controls on foreign visits

Meanwhile, the government has introduced new standards imposing tighter controls on foreign visits by civil servants and other government employees.

The PMO informed that the new provisions are implemented to make foreign travel more systematic and cost-effective, while also adopting a stricter approach to their implementation.

It has issued a circular to all ministries, commissions and government agencies, directing them to obtain prior approval from the PMO before nominating any employee for a foreign trip. The new arrangement is being enforced to completely prevent foreign travel and nominations made without prior approval, informed Aryal.

The new provisions are intended to curb unnecessary overseas trips while making the purpose and outcomes of such travels more transparent.

The government has also tightened measures to ensure that lessons learned from foreign travels are institutionally utilised within the government system. Employees returning from overseas study visits, tours, training programmes, meetings, seminars, workshops or conferences are now required to share the knowledge, skills and good practices they have acquired with other employees.

Under the new standards, employees must conduct a knowledge- and experience-sharing session with colleagues at their respective offices within five days of reporting back to work after completing a foreign trip.

 

PMO collects strategic documents

Meanwhile, the Prime Minister’s Office is collecting documents from all ministries to systematically, centrally and regularly maintain documentation concerning Nepal's international obligations and their implementation.

Likewise, Aryal informed that there has been an approximately 350 per cent increase – on year-on-year basis – in the number of calls received by the Hello Sarkar call centre's toll-free hotline 1111 in recent times.

"People are increasingly using the multi-channel grievance management system to register complaints concerning public service delivery and matters of public concern, as well as to follow up on them," he said. 

  Published in The Rising Nepal on 15 August 2026.  

Saturday, August 1, 2026

DoP increases passport printing to 1,500 a day

Kathmandu, July 29

The Department of Passports (DoP) has increased its production capacity to meet the rising demand for electronic passports (e-passports), saying it is now producing and printing around 1,500 passports a day.

The department said that demand has risen significantly in recent weeks, particularly due to an increase in the number of Nepalis travelling to South Korea for employment.

In a press statement issued on Wednesday, the DoP said it has been continuously improving its service delivery system and production capacity to provide citizens with faster, simpler, safer and more efficient access to e-passports.

According to it, demand for e-passports has increased sharply over the past week. In response, it has expanded production capacity and is continuing to enhance its output to ensure applicants receive their passports on time.

The DoP attributed the growing demand to the increasing number of Nepalis travelling abroad under the Employment Permit System (EPS), as well as for employment, education, tourism, medical treatment and other purposes.

It noted that e-passport services are not limited to Kathmandu. Applications can be made through all 77 District Administration Offices, as well as various Area Administration Offices across the country.

Nepali citizens living overseas can also apply for e-passports through Nepal's diplomatic missions abroad.

The department said it plans to further expand services and strengthen the system in line with growing public demand. It added that technical and managerial measures are being implemented to resolve recent technical issues within the next month and stabilise the system within three months.

"We are working closely with technical partners to improve system capacity, stability and performance so that applicants do not face unnecessary delays," read the statement.

It maintained that as passports are an essential government document, priority is being given to applicants requiring urgent passports for foreign employment, education, medical treatment, family matters and other essential purposes.

"We will continue providing services despite the increased workload, while ensuring priority assistance for applicants with urgent needs wherever possible," it said. 

Published in The Rising Nepal daily on 30 July 2026.         


Wednesday, July 29, 2026

Govt to establish high-priority response desk for investors

Kathmandu, July 28

The government is set to establish a high-priority response desk at the Ministry of Finance to address concerns raised by the private sector as it steps up efforts to improve the investment climate and accelerate economic reforms.

Finance Minister Dr. Swarnim Wagle said at an interaction with the entrepreneurs on Tuesday that the proposed response desk would coordinate with relevant ministries, departments and agencies to resolve legitimate concerns raised by businesses. He said the government intended to replace delays in decision-making with a system focused on timely action.

According to him, the government had adopted a roadmap to repeal outdated laws, improve the investment environment, simplify and make the tax system more transparent, and enhance the ease of doing business.

He also said that expanding the capital market and alternative financing instruments, reforming the labour market and strengthening digital public services will get equal priority.

He said 42 laws directly related to the economy were currently under amendment or repeal.

FM Dr. Wagle said the government had identified three priorities - enabling existing industries to operate at full production capacity, creating conditions for businesses to expand with confidence and encouraging new enterprises and investment, particularly by young entrepreneurs.

According to him, improvements in these areas would contribute to higher economic growth, employment generation, revenue collection and exports. "The government's role is not to run industries but to create an investment-friendly environment in which businesses can operate without unnecessary obstacles," he said.

The finance minister has also sought feedback from the private sector on the factors behind high production costs, barriers preventing industries from operating at full capacity, reasons for weak investment decisions and administrative and legal hurdles related to land acquisition, electricity supply and tariffs, labour, transport, finance, raw materials and market access.

Likewise, the finance minister said the implementation of economic reforms announced through the national budget was progressing. Legal amendments, regulations, operating procedures and institutional reforms would be introduced according to a fixed timetable, while efforts to increase capital expenditure, speed up project implementation and strengthen the capital market and financial sector would continue in parallel.

He reiterated the government's commitment to protecting private sector investment and creating conditions that would allow businesses to earn returns and reinvest, saying private sector growth was essential for Nepal's economic transformation. 

Published in The Rising Nepal daily on 29 July 2026.         


Saturday, July 25, 2026

Contractors laud amendment to Public Procurement Act

Kathmandu, July 15

The Federation of Contractors' Associations of Nepal (FCAN) has said that the second amendment to the Public Procurement Act, 2007 will accelerate the country's infrastructure development.

Expressing its gratitude to the government, through a statement on Tuesday, for this facilitation, it said that the amendment's provision replacing the practice of awarding contracts through 'low bidding' with an average bid evaluation method is highly positive and is expected to resolve most of the longstanding problems facing the infrastructure sector.

"The Federation is confident that this amendment will prove to be a milestone in the development of the infrastructure sector and mark the beginning of a new chapter for the construction industry," said FCAN's General Secretary, Shiva Hari Ghimire.

According to the FCAN, the amendment contains several positive provisions, including prohibiting the initiation of procurement processes without budget allocation or secured funding, and allowing tender invitations only after land acquisition, compensation, site clearance and environmental approvals have been completed.

It also includes rules requiring cost estimates to be prepared in accordance with government-approved standards, and clearly defining the responsibilities of employers, contractors, suppliers and consultants.

The Federation further stated that the amendment will help expedite the construction sector by providing incentives, bonuses and other benefits to government employees who ensure the timely completion of quality projects, while also offering contractors incentives and letters of appreciation as prescribed. It also welcomed the reduction of the performance guarantee requirement to 5 per cent.

"The FCAN believes that other provisions, such as recognising the combined qualifications of companies following mergers, shortening the time allowed for bid submission, and making the decisions of the Public Procurement Review Committee binding for implementation, will contribute to making the infrastructure sector more orderly and professional," read the statement.

Meanwhile, the Federation urged the government to ensure that the forthcoming amendment to the Public Procurement Regulations includes a provision allowing price adjustment for procurement contracts of all periods.

Published in The Rising Nepal daily on 16 July 2026.         

Wednesday, July 8, 2026

Govt begins efforts in good governance, reform

 Kathmandu, July 3

The government has completed its first 100 days in office, marking the beginning of efforts to implement its commitments to good governance, public sector reform, reducing corruption, recovering illicit assets, and strengthening the accountability of state institutions.

Under the leadership of Prime Minister Balendra Shah, the government has launched the implementation of its policy agenda, accompanied by a long-term vision aimed at achieving its good governance objectives.

In the budget for the Fiscal Year 2026/27, the government has introduced programmes focused on economic transformation. It has also initiated accelerated reforms to ensure economic stability while addressing the management of informal and unplanned settlements.

During its first 100 days, the government has implemented measures aimed at eliminating delays and discourteous treatment of service users in public offices, expediting the printing of passports and driving licences, and making public service delivery more citizen-centred.

Former treasurer and senior leader of the Rastriya Swatantra Party (RSP), Lima Adhikari, and political analyst Professor Meena Vaidya Malla described the government's initial performance as encouraging.

"The RSP has also successfully completed its general convention during this period. Within these 100 days, the government has taken significant action against corruption. I believe that the commitment demonstrated by both the government and the RSP, together with the practice of a new political culture, will help strengthen, enhance and consolidate Nepal's democracy," Professor Vaidya said.

Likewise, Adhikari stated that the government has developed a clear roadmap, particularly for improving public service delivery and promoting good governance. She noted that it has begun implementing measures to eliminate the difficulties and inconvenience that citizens have long faced in accessing public services.

She further claimed that the policy of zero tolerance towards corruption has been applied effectively from ward level through to the central government, and that the budget has helped restore confidence within the private sector.

"The budget is transformative. The work accomplished during these first 100 days has been outstanding. Reforms in the economic sector will revitalise the overall economy," said Adhikari.

However, Political analyst Professor Rajesh Gautam said that the government's approach should be aligned with public expectations. While there were grounds for optimism during the early stages following the formation of the government, he said the current situation suggests that it has not been able to uphold the aspirations of the people and democratic principles in an appropriate manner.

"There must be proper coordination between the government and the party leadership. At present, it appears as though the government is moving in one direction while the party leadership is moving in another. Such duality creates uncertainty in politics. It is needed to provide a long-term direction for the country's politics," said Professor Gautam.

He also emphasised that, in tackling corruption, the government should proceed systematically by gathering robust evidence before pursuing legal action.

"Those who have been arrested are subsequently being released by the courts. This indicates that the charge sheets have not been prepared with sufficient strength and supporting evidence," he said while adding that the government should not be driven by publicity.

Published in The Rising Nepal daily on 4 July 2026 (Originally written by Ashok Adhikari).       

Capital spending continues to challenge government

Gen Z protest, petroleum price hike blamed

 

Kathmandu, July 4

The current Fiscal Year 2025/26 witnessed disastrous moments with demonstrators burning down national heritages and private sector establishments during the Gen Z movement in September last year. Death of 76 people and political confusion caused a panic among the public while investors postponed or cancelled their business ventures. Economic prospects plummeted. Hopes for prosperity vanished.

However, despite doubts, fears and conspiracy theories, the country successfully held the general elections within the announced time and people felt the country has now been brought on track. Public opinion changed, so did the government.

The year saw three finance ministers – Bishnu Prasad Paudel, Rameshore Prasad Khanal and Dr. Swarnim Wagle. Paudel was the political architect of the CPN-UML, albeit without any experience or expertise in the sector, while Khanal was a technocrat with an expertise in economic affairs, and Dr. Wagle is an internationally known economist who had worked with the World Bank, UNDP and National Planning Commission of Nepal, among others.

Although Paudel was ousted by the movement within two months of this fiscal and the economy was managed by two senior economists – Khanal and Dr. Wagle, budget mobilization remained pathetic with capital spending remaining the lowest in the recent times.

According to the statistics from the Financial Comptroller General Office (FCGO), the government could mobilise only Rs. 146.7 billion of the Rs. 407.88 billion capital allocation by Thursday, July 2. This is just 35.97 per cent of the total allocation.

Economist Dr. Dilli Raj Khanal said that this is collective failure of the government and leaders. "It is disheartening to see the government fail to bring about programmes and measures to boost economic activities and morale of the investors and consumers," he said.

Dr. Khanal maintained that the aftermath of economic crisis demands both short-term and long-term measures to revitalise the economic and business activities which both the transition and current majority government failed to implement.

However, spending has significantly gone up recently, with the government mobilising Rs. 19.7 billion on Thursday and Rs. 8.7 billion on Wednesday. Even if the government continued this spending spree for the remaining days of the fiscal year, total spending is likely to remain around 80 per cent while the development expenditure could be lower than 45 per cent.

However, the Ministry of Finance (MoF) maintained that a few large payments to the contractors and other liabilities could increase this spending up to 50 per cent. For instance, development expenditure on Wednesday was Rs. 1.15 billion and on Thursday Rs. 1.48 billion.

Although, two weeks remain before the conclusion of this year, the government could disburse the payments only up to July 9, as provisioned by the Economic Procedures and Fiscal Accountability Act and bylaws. After that the payment systems like Financial Treasury Controllers Offices and online payment channels freeze.

 

A trend in failure

While the MoF officials cited Gen Z movement for the disturbances in budget mobilisation, statistics show that it is not the one-time failure but has become a trend. During the same period, with two weeks of the year remaining, in FY 2024/25, about 75 per cent budget was mobilised while the capital expenditure stood at 46.6 per cent (Rs. 164.15 billion of Rs. 352.35 billion).

But total capital expenditure reached 81 per cent by the end of the FY 2024/25 which supports the claims of the Finance Ministry that such spending can reach 50 per cent.

In 2023/24, Rs. 146.7 billion (48.57 per cent) of Rs. 302 billion could be mobilised during the corresponding period while such expenditure was 44.82 per cent (Rs. 170.5 billion of Rs. 380.38 billion). In 2020/21, the year when the COVID-19 hit hard the lives and economy, capital expenditure remained around 46 per cent during the same period.

Meanwhile, recurrent expenditures have remained identical (70 to 74 per cent) in the past five fiscal years.

Likewise, budget revision has also become a trend in the past several years with every finance minister downsizing their budget during the mid-term review. Finance Minister Khanal couldn't remain exception. He slashed the annual budget target to 85.96 per cent or Rs. 1688.3 billion from Rs. 1964.1 billion.

Minister Khanal had presented the unusual situation created by the Gen Z movement, and the Cabinet's decision to reprioritise projects, as well as austerity measures to reduce expenditures as the reasons for budget downsizing. The government also said that it had to manage funds for the general elections and relief to the families of those injured and killed in the protests from the existing framework. 

By mid-January this year, only 12 per cent of the budget earmarked for development works was utilised.

 

Reforms impact spending

The transitional government led by Prime Minister Sushila Karki suspended small projects worth Rs. 119.5 billion because they were unprepared and unproductive.

Then Energy Minister Kulman Ghishing scrapped 58 non-performing and sick construction contracts from 312 such projects.

FM Khanal said then that the government's priority was to enhance 'expenditure efficiency' and 'execution efficiency' in public finance management so the government wanted to reallocate resources to transformative and strategic projects. This reform move reduced the mobilisation of the fund and caused a brief panic in the construction industry.

Meanwhile, the soaring prices of petroleum products including diesel and bitumen, and steel forced the contractors to pause the construction of the public projects. According to the Federation of Contractors Association of Nepal (FCAN), petroleum products' price increase pushed the project cost by 30 to 40 per cent, making it impossible for the contractors to continue with the previously agreed amount.

Spokesperson of the MoF Amrit Lamsal said that the surging price of the petroleum products significantly impacted the development projects. "Several government offices including that of the local governments were damaged during the Gen Z movement which obstructed or delayed the implementation of development works," he said.

Similarly, during the period of the transition government, the focus of the entire government and its agencies was on holding the elections successfully, according to Lamsal. But he maintained that the authority given to the line ministries for budget transfer without coming to the Finance Ministry for approval couldn't prove effective due to the obstacles created by the soaring fuel prices.

Economists say that the entire mechanism for budget mobilisation needs an overhaul. Responding to this recommendation, FM Dr. Wagle had further simplified the budget disbursement process and said that from the first day of the FY 2026/27, line ministries can initiate the development works and they don't need additional approval from the Finance Ministry for it.

Revenue collection on track

The government revenue collection has hovered around 75-76 per cent, until July 2, this year and previous year. Targets for this is Rs. 1480 billion while it was Rs. 1419.3 billion for last year.

So far, Rs. 1128.2 billion revenue is collected which includes Rs. 1024.4 billion tax revenue and Rs. 103.8 billion non-tax revenue.

While revenue collection remained somewhat satisfactory, government could never meet the targets set for the grants. This year the achievement has remained at 11.87 per cent of Rs. 53 billion while it was 38.11 per cent (highest in the past five years) of Rs. 52.3 billion. In 2022 and 2023, realisation of the targets for grants remained below 10 per cent.

Meanwhile, the provincial governments have also failed to meet their revenue and expenditure targets. By mid-May 2026, seven provincial governments could spend Rs. 88.53 billion and mobilised revenue of Rs. 163.74 billion.

According to the statistics published by the Nepal Rastra Bank, the total resource mobilisation of provincial governments, by mid-May, including grants and revenue transferred from the federal government, amounted to Rs. 122.25 billlion, and province revenue and other receipts amounted to Rs. 41.42 billion.

The seven provinces' cumulative budget for this fiscal is Rs. 287 billion. 

Published in The Rising Nepal daily on 5 July 2026.       

Friday, July 3, 2026

Thapa appointed Chair of TU Service Commission

Jha named Ministry Advisor

 

Kathmandu, July 1

The government has appointed former secretary and urban planner Kishor Thapa as Chair of the Tribhuvan University Service Commission.

The appointment was made by Prime Minister and Chancellor of Tribhuvan University, Balendra Shah.

The Chair Recommendation Committee, led by Pro-Chancellor and Minister for Education and Sports Sasmit Pokharel, had reviewed applications, conducted evaluations and interviews, and recommended three candidates to the Chancellor for the position.

Widely recognised as an architect and urban planner, Thapa has contributed to Nepal's civil service for more than four decades in a range of senior leadership roles. He previously served as Secretary at the Ministry of Urban Development, the Ministry of Education, the Ministry of Culture, Tourism and Civil Aviation, and the Water and Energy Commission Secretariat, among other government institutions.

He played a leading role in the formulation and implementation of several major government policies and programmes, including the National Housing Plan, the National Urban Development Strategy, the Technical and Vocational Education and Training Policy, and Nepal Tourism Year 2011.

Following the 2015 earthquake, Thapa served as an expert member of the Steering Committee of the National Reconstruction Authority, contributing to the country's post-disaster reconstruction efforts. He brings extensive experience in housing, urban development, infrastructure, disaster management and public policy.

Likewise, Professor Dr. Rejina Maskey has also been appointed as a Member of the Commission.

Meanwhile, Shailendra Jha, has been appointed Advisor to the Ministry of Education and Sports.

Jha is currently undertaking academic study and professional research at Vanderbilt University in the United States under the prestigious Hubert H. Humphrey Fellowship (2025–26) funded by the U.S. Department of State.

Previously, Jha served as a Board Member of the Kathmandu Metropolitan City Urban Planning Commission, where he oversaw education, technology and social innovation. In that role, he led policy development, strategic planning, resource mobilisation and monitoring for the Metropolitan City's Education Department, Social Development Department, and research and innovation initiatives.

He also spent nearly eight years with Teach for Nepal. Jha is the founding Chair of BITS Leader International Pvt. Ltd. Academically, he holds Master's degrees in Information and Communication Engineering from Germany, Development Management from the Philippines, and Applied Economics from Bangladesh.

Published in The Rising Nepal daily on 2 July 2026.      

Tuesday, May 19, 2026

Ending The Sway Of Middlemen

 

Nepal's political development, including changes of all scales, always culminated in power-sharing among the major political forces and seeking support from the existing political and economic elite. They became so apathetic to the public issues that reports of all the review, reform and probe commissions were buried under massive political interest, and sometimes a collusion among the politicians, businesspersons and criminals didn't allow it to come out. 

Public expectations for basic services like obtaining a passport, driving licence and National Identity Card (NID), reaching other locations on time, and having good health and education services were never addressed. Political 'bhagbanda' became a culture, and a few individuals played musical chairs with the lucrative posts. To the great surprise of the public, the same individual could be an expert in energy, industry and even sports. For political leaders, there were no experts beyond their coteries. While most of the top government posts in public bodies were allotted at the discretion of the prime minister or minister, a few competitions made to appoint chiefs of public corporations were 'a farce'. The results used to be fixed, but the entire process would be followed to appoint their henchmen. 

A few years ago, the middlemen were ruling the application process for passports, labour permits, and driving licences. People paid up to Rs. 10,000 to get their passport application filled out by an agency. Neither the government nor the anti-graft bodies and activists raised the issue of data protection, although there were concerns about the technical efficiency and exorbitant fees charged by the middlemen. 

Missed opportunities 

The country missed multiple opportunities to set a basis for good governance with the adoption of Information and Communication Technology (ICT). The first was after the revolution of 1990. But the Nepali Congress' government was more focused on economic liberalisation. The second came with the culmination of the Maoists' armed war. The then Maoist-led 'revolutionary' government failed to meet the public expectations because, rather than implementing sweeping reforms in governance, administration and procedures, it opted for the way of 'consensual governance', which was safer and appeared as a solution to stay in power for a long time. It is equally important that it lacked the clear majority to implement its policy and programmes single-handedly. 

The third chance dawned with the almost two-thirds majority government formed in 2018 by the Nepal Communist Party – created with the unification of the CPN (UML) and the CPN (Maoist Centre). The government formed after the country was ushered into federalism created foundations for the new political structure and initiated long-term development projects. But good governance took the back seat. The prime minister and ministers pledged rapid and massive development both in terms of physical and social aspects. However, delivery remained poor against their promises. That was the period when youths were struggling to successfully submit their application for a passport. 

The fourth occasion for governance reform is now. The almost two-thirds majority government of the Rastriya Swatantra Party (RSP) is also comparatively less meddled with by the power-brokers and national-scale middlemen. The government’s initial actions against potentially corrupt individuals and middlemen showed early signs of positive progress.

Faceless, paperless service

Good governance in public service, infrastructure development, delivery of health services, and quality of utility services is critical for the overall development of any society. For this, all the agencies dealing with the public, such as police, land, revenue, administration and local bodies, should assure prompt service at a reasonable fee. The first step towards this development is creating a faceless and paperless system for every service delivery. Critical public agencies should be fully equipped with information technology and skilled human resources. 

Likewise, for the activities like public procurement of goods and services, anti-graft bodies should enhance their surveillance. However, it is also equally important to have the right people in such bodies like the Commission for the Investigation of Abuse of Authority (CIAA), the National Vigilance Centre (NVC), and the Public Procurement Monitoring Office (PPMO). The government has already expressed commitment that the structure of investigative and regulatory bodies and institutions will be reformed and strengthened. 

The RSP has pledged in its election manifesto that by 2031, public services will be shifted to online platforms, while a national database linking to the National ID cards will be created to streamline social security and policy implementation. By then, the compulsion to visit offices and meet employees to receive government services will be brought to an end. 

Indicator system 

In its national commitment made public on April 13, the government said service-providing agencies will be linked to a good governance indicator system, and a system will be developed for service recipients to evaluate offices. Likewise, while providing impartial, swift, and high-quality services, all types of corruption—including syndicates, irregularities, delays, and malpractice within the public service delivery system—will be controlled, pledged the government.

The government has indicated that it would move ahead in governance by incorporating the election agenda of the major political parties. The government said the assets of individuals holding public office after 1990 will be made transparent and investigated. This agenda has been propping up intermittently in national political discourse, and various political parties have pledged to implement this, but there is no progress so far. The RSP has said in its manifesto that it will begin the move to good governance with an investigation of the assets of the high-ranking officials who held the public posts since 1990. Illegally acquired assets will be confiscated and nationalised. 

Alongside the institutional strengthening of constitutional bodies, the definition of policy decisions made by the Council of Ministers will be clarified. Laws concerning the protection and encouragement of whistleblowers, as well as laws regarding conflicts of interest, will be formulated.  Judges of all courts will be appointed on the basis of meritocracy through a competitive system. 

Common tendencies like rent-seeking, policy capture, cartels and artificial shortages are to be controlled to ensure fair competition, entrepreneurship and a business-friendly environment. The election manifesto of the RSP said the government is set to introduce predictable tax policies (at least 10-year stability) and simplify procedures through paperless digital systems, improving investor confidence.

Similarly, the government is set to implement development projects in a target-oriented work style (mission mode). To ensure projects are completed qualitatively and on time, it will make arrangements not to transfer project heads and staff until the project is finished. 

However, the success of the government will rest on its capacity to generate and mobilise meagre resources that are insufficient even to meet the administrative operation cost. Although the government has initiated reforms in public bodies with the removal of the politically appointed officeholders, it is critical to overhaul the entire system that has long been inefficient and cumbersome to achieve the goals of good governance. 

Published in The Rising Nepal daily's Friday Supplement on 7 May 2026.           

Saturday, May 16, 2026

Outstanding arrears reach Rs. 755 billion

Kathmandu, May 15

Cumulated arrears in the country have reached Rs. 755 billion, concluded the Office of the Auditor General (OAG) report for the Fiscal Year 2024/25 unveiled on Friday. The arrears witnessed 2.99 per cent increase from the previous year.

Till FY 2023/24, arrears stood at Rs. 667.08 billion. Rs. 88.09 billion was added last year.

The OAG conducted audits worth Rs. 9.484 trillion in the last fiscal year, covering federal, provincial and local levels, organised institutions, and other bodies and committees designated under federal law.

The OAG conducted the audits of 3,050 federal ministries and agencies amounting to Rs. 2.917 trillion, 1,124 provincial ministries and agencies amounting to Rs. 320.30 billion, and 721 local levels amounting to Rs. 1.109 trillion.

Similarly, the audit of 54 fiscal years for 44 organised entities other than ministries and line agencies, involving an amount of Rs. 4.688 trillion, has been completed. In addition to this, for 46 fiscal years of 40 entities where consultation was provided, the designated auditors have completed audits amounting to Rs 1.832 trillion. The settlement of arrears is handled by the boards of the respective organised entities themselves.

However, the Gen Z movement impacted the audit work. Audits amounting to Rs. 147.90 billion could not be carried out as 179 offices and agencies failed to submit their accounts and related records as they were destroyed during the movement.

Of Rs. 88.09 billion arrears added in FY 2024/25, Rs. 53.48 billion is from the federal government offices. Rs. 5.22 billion from provincial government offices and Rs. 19.04 billion from local governments. Federal and provincial governments' committees and other offices have generated Rs. 10.32 billion arrears.

Through the settlement and clearance of previous irregularities and issues identified this year, only Rs. 14.63 billion has been recovered.

 

Madhes records highest arrears

In provinces, Madhes recorded the highest percentage of audit irregularities with an irregularity rate of 3.77 per cent last year. Audits of 150 offices in the province covering accounts worth Rs. 49.69 billion were conducted, of which irregularities amounting to Rs. 1.87 billion were identified.

Likewise, Bagmati recorded the lowest irregularity rate at 0.83 per cent. Audits of 209 offices in Bagmati covering Rs. 83.15 billion found arrears worth Rs. 693.7 million.

In Koshi, arrears amounted to Rs. 555.3 million – 1.12 per cent of the total audited amount Rs. 52.38 billion.

Arrears in Gandaki amounted to Rs. 540.3 million, Lumbini Rs. 633.2 million. Karnali Rs. 700 million and Sudurpaschim Rs. 555.9 million.

 

70% arrears in Finance Ministry

The OAG Report found that the highest amount of arrears (70.36 per cent of the total Rs. 53.48 billion) is generated at the Ministry of Finance, among the federal ministries.

An audit of Rs. 2.244 trillion under the MoF found a total of Rs. 37.63 billion in arrears, including Rs. 20.95 billion to be recovered, Rs. 16.63 billion requiring regularisation, and Rs. 45.7 million in outstanding advances.

The Ministry of Physical Infrastructure and Transport followed the MoF with 13.28 per cent share in the total arrears. An audit of Rs. 123.93 billion under the Ministry revealed total irregularities of Rs 7.10 billion, including Rs. 2.20 billion to be recovered, Rs. 4.40 billion requiring regularisation, and Rs. 488.1 million in outstanding advances.

Likewise, the Ministry of Land Management, Cooperatives and Poverty Alleviation recorded 2.87 per cent of the total arrears, with total unsettled amounts of Rs. 1.53 billion. The Ministry of Forests and Environment reported irregularities of 2.52 per cent, equivalent to Rs. 1.34 billion.

The Ministry of Communications and Information Technology has arrears amounting to 2.18 per cent - Rs. 1.16 billion.

Similarly, arrears at the Ministry of Urban Development stood at Rs. 805.1 million, the Ministry of Foreign Affairs Rs. 743.4 million, the Ministry of Energy, Water Resources and Irrigation Rs. 652.6 million, the Ministry of Home Affairs Rs. 577.2 million, and the Ministry of Health and Population Rs. 524.3 million.

Published in The Rising Nepal daily on 16 May 2026.           

Friday, May 15, 2026

Govt launches policy collection portal

Kathmandu, May 9

The Office of the Prime Minister and Council of Ministers (OPMCM) has launched a ‘Suggestion Collection Portal’ to ensure the direct participation of citizens in the process of formulating the policies, programmes and budget for the upcoming fiscal year.

The digital platform has been introduced with the objective of making governance more transparent and people-oriented by incorporating the genuine needs and fundamental expectations of the public into the policies and programmes that are set to be unveiled next Monday.

Through this portal, all Nepali citizens residing in Nepal and abroad, as well as subject experts and policymakers, will be able to submit their valuable opinions and suggestions directly to the government regarding budget formulation and development priorities, informed the Finance Ministry in a statement.

"The initiative has been launched in line with the Prime Minister’s broader plan to ensure that the policy-making process is not confined solely to administrative circles, but also values the sentiments and expertise of the general public," read the statement.

The Prime Minister's Office stated that the portal would help bridge the gap between citizens and the state, establish a new practice of good governance, and ensure that the suggestions received are seriously reviewed at the administrative level and implemented through policy measures.

The system also includes a special ‘suggestion tracking’ feature, enabling citizens to monitor the status of their submissions and the actions taken by the government in response.

Meanwhile, the government has made a public appeal to all Nepalis to actively participate in this important digital initiative and contribute constructively to the national campaign of building a “Prosperous Nepal”.

Citizens will be able to use the portal through the official website of the OPMCM to send their opinions and suggestions directly to the Prime Minister’s Secretariat.
Within a few hours of the launching of the portal, more than 1000 suggestions have been submitted to it. The suggestions are broadly categorised into two – Budget and Policy.

Likewise, the suggestions are received in the areas of intergovernmental coordination, finance, industry and commerce, public finance management, infrastructure development, education, health and science, forest management, land administration, social security, citizen service, good governance, law and justice, civil servant administration, and others. 

Published in The Rising Nepal daily on 10 May 2026.           

Wednesday, May 6, 2026

Construction sector hit hard by price rise: FCAN

Kathmandu, May 5

The Federation of Contractors’ Associations of Nepal (FCAN) has said that the construction industry is currently facing one of the most difficult periods in its history owing to the abrupt price rise of fuels and construction materials.

Speaking at a press meet in Kathmandu on Tuesday, FCAN President Nicholas Pandey said that the ongoing conflict in West Asia has caused abnormal increases in the prices of fuel, including diesel and kerosene, as well as construction materials such as bitumen, cement and steel rods.

"The price of diesel has risen from Rs. 139 per litre to Rs. 225 in just a couple of months, while bitumen has increased from Rs. 75 to Rs. 155 per kilogram. As a result, construction costs have surged, forcing contractors into a 'force majeure' situation," he said.

The FCAN expressed dissatisfaction over the government’s inability to take effective decisions on price adjustment. It noted that weak capital expenditure by the state, sharp increases in the prices of construction materials, and policy uncertainty have brought most projects across the country to a near standstill. Only about 27 per cent of the capital budget allocated for the current fiscal year 2025/26 has been spent so far, directly affecting infrastructure development.

Pandey said that the sector—comprising around 32,000 contractors affiliated through seven provincial bodies, 77 district associations and other members—is under severe financial pressure.

Likewise, stating that rising costs and shortages of materials have halted most projects, including those of national pride, the FCAN urged the government to extend deadlines for all projects, including provisions for bank guarantees, insurance and compensation.

"While recent amendments to the Public Procurement Act, 2007 have introduced some positive provisions, key issues such as low bidding remain unresolved. Issues like price adjustment, consumer committees and monthly payments are still unclear," it said.

Similarly, the Federation warned that ongoing crackdowns on contractors and entrepreneurs have created fear within the private sector, negatively affecting investment, employment and supply systems. 

Meanwhile, the Ministry of Physical Infrastructure and Transport (MoPIT) issued a set of directives to accelerate construction works and enhance project accountability across the country. 

Secretary of the Ministry Gopal Prasad Sigdel directed the director generals and project chiefs to immediately fast-track ongoing contracts.

He also directed for the urgent reporting of hurdles related to local material extraction and supply chain disruptions, particularly regarding shortages of bitumen and fuel.

Likewise, the MoPIT warned the project chiefs that they will be held personally responsible for any stalled activities or lack of progress on-site. To ensure real-time oversight, the Ministry has mandated regular updates via virtual platforms, such as WhatsApp groups. 

It also asked the contractors to mandatorily provide detailed Resource Mobilisation Plans. The Ministry is set to conduct 'strict monitoring', and issued a warning that contractual action will be taken against those failing to meet deadline

Published in The Rising Nepal daily on 6 May 2026.           

Government begins paying salary every 15 days

 Kathmandu, Apr. 29

The government has begun paying civil servants their salaries every 15 days.

The initiative has been implemented from Wednesday as a pilot project. The programme was formally launched by Finance Minister Swarnim Wagle at an event held at the Ministry of Finance (MoF).

The system was initiated after the Financial Comptroller General Office (FCGO) sent payment orders to the Treasury Controller Office through the Computerised Government Accounting System (CGAS). Following the minister’s directive, employees at the MoF received the first half-month salary for the month of Baisakh (second half of April).

Finance Minister Dr. Wagle said the decision was taken to stimulate economic activity. “Paying salaries every 15 days will help keep the market active. Both consumption and demand will increase,” he said, adding that the system has been introduced as a pilot for federal civil servants and will gradually be extended to all government salary earners.

Financial Comptroller General Shova Kanta Poudel said that the system would gradually be extended to provincial and other public service employees. He noted that the office is technically prepared to implement the system and will expand it step by step.

According to Poudel, the existing system allows salaries to be paid either every 15 days or monthly, depending on employee preference.

He added that fortnightly payments would help create regular demand in the market and support economic activity. Poudel also said the system is expected to distribute consumption expenditure more evenly and improve cash flow for small businesses.

The decision to implement the pilot project was made by the finance minister on April 17. 

Published in The Rising Nepal daily on 30 April 2026.         

Saturday, April 25, 2026

Experts stress governance reform, investment boost and employment generation in new budget

Kathmandu, Apr. 24

Weak governance, reduced private sector confidence, weak manufacturing, growing unemployment and procedural hurdles should be the fundamental aspects the upcoming budget of the Fiscal Year 2026/27 should address, said economists and investors.

Speaking at the pre-budget discussion programme organised by the Management Association of Nepal (MAN) in Kathmandu on Friday, they said that the process should facilitate the business and industry while the government should be clear on the treatment of entrepreneurs.

Dr. Baikuntha Aryal, former Chief Secretary, said that infrastructure development, governance reform, human resource development and upskilling, and improving the investment environment should be the priority of the upcoming budget.

He informed that for the past several years, the federal government has failed to meet the 80 per cent mark in mobilising the development budget. The weak government spending has resulted in poor private sector investment and revenue mobilization.

"Hope is rekindled with the formation of stable government which has initiated a process to include the crucial pledges from the manifestos of the major political parties, annul the restrictive 15 laws and improve governance," he said while adding that single tax code and simplified tax process with investor-friendly tax administration will help to increase the revenue.

According to him, the budget allocating system should be changed to global budgeting or agency budgeting. The Finance Ministry shouldn't allocate budget directly to the projects.

Project readiness filter should be made mandatory. This filter was announced a decade ago but rarely implemented. All the projects should be harmonized with the current periodic plan (5-year) and mid-term expenditure framework (3-year), said Dr. Aryal.

He suggested that the government should run corporations only producing goods and services, own only one bank while private investment should be invited in all other public enterprises.

Dr. Ramesh Chandra Poudel, former Member of the NPC, said that the entire government mechanism including the institutions and bureaucracy has remained inefficient, so if the current government couldn't make it efficient, desired results can't be achieved.

Paradigm shift is needed in health and education sector to give greater emphasis to social development.

Businesspeople mustn't be handcuffed until proven guilty, the tendency to arrest them, take to the court and releasing afterwards will be counterproductive.

Chartered Accountant Sudarshan Raj Pandey said that the share of capital budget is just about 12-15 per cent of the total budget and the country has been failing to mobilise even this small amount. This has impacted the overall development of infrastructure and other projects.

"We have excess liquidity now so the government can issue long-term bond to raise money to expedite development projects that have remained sluggish due to shortage of sufficient funds," he said.

According to Pandey, removal of education and health services tax has compromised the transparency in these sectors. The 1 per cent tax on these services had not increased the cost of business but the interest groups influenced the political leadership and succeeded in repealing the provisions. Such practice should be discouraged, he said.

He also said that multiple VAT (Value Added Tax) rates - as advocated by some economists and financial experts - can be an accounting nuisance. This will create challenges in its implementation, compliance and supervision.

Former Finance Minister and former Governor of the Nepal Rastra Bank, Dr. Yuba Raj Khatiwada, said that although it sounds cliché, the tax base needs to be expanded and tax rates should be moderated.

"However, there is a threshold below which tax rates should not fall; otherwise, it leads to the flawed assumption that setting taxes to zero would generate higher revenue," he said.

Dr. Khatiwada said when efforts were made to bring lawyers into the income tax net, they resisted, saying they would not plead cases and would halt court proceedings. While doctors and engineers have been brought within the tax system, lawyers have yet to be effectively included.

Commenting on cross-border smuggling of goods, he maintained that those who cross the border multiple times a day to bring in goods should not be given even a one-rupee exemption, let alone a Rs. 100.

"If air travellers are allowed baggage concessions, similar facilities should also be extended to those travelling to India by land. Proper records of entries and exits should be maintained," said Dr. Khatiwada.

Published in The Rising Nepal daily on 25 April 2026.         

Non-Resident Nepali Act to be tabled at Parliament

Kathmandu, Apr. 23

A draft bill related to the proposed Non-Resident Nepali Act is being prepared for tabling in the upcoming parliamentary session, Foreign Minister Shisir Khanal informed during an interaction with the Non-Resident Nepali Association (NRNA) at the Ministry of Foreign Affairs on Thursday.

He said that the government is committed to making the law effective by incorporating the rights, roles and contributions of non-resident Nepalis, the NRNA quoted FM Khanal in a statement.

The MoFA said in a tweet that the Minister shared his plan to present the draft of the law in the parliament.

"He further underscored the need for greater clarity in expressing the constitution's aspirations- both in terms of their conceptual foundations and practical realisation," said the MoFA.

NRNA delegation including president Hemraj Sharma, founding president Upendra Mahato, immediate past president Badri KC, former president Kul Acharya, founding international coordinator Bhim Udas, vice-presidents Rojina Pradhan Rai and Buddhi Subedi, and focal person Saroj Dahal, presented suggestions on the draft bill.

They stressed the need to align it with the social, economic and cultural rights enshrined in the constitution while also addressing the aspirations of non-resident Nepalis. The country has already begun issuing citizenship certificates to the NRNs as per the constitutional provisions.

Foreign Secretary Amrit Bahadur Rai said the ministry considers NRNA a reliable partner and expressed confidence that cooperation would be further strengthened in the coming days.

Published in The Rising Nepal daily on 24 April 2026.         

Asset Investigation Commission begins its work

 Kathmandu, Apr. 22

The government-formed Asset Investigation Commission, established with the objective of ending widespread corruption and impunity in the country, has formally commenced its work from Wednesday.

A Cabinet meeting on April 15 had constituted the five-member commission under the chairmanship of former Supreme Court Justice Rajendra Kumar Bhandari. The commission’s office has been set up at Keshar Mahal.

Bhandari, took the oath of office and secrecy on Wednesday before Acting Chief Justice Sapana Pradhan Malla. He subsequently administered the oath to other members - former Chief Judge of the Appellate Court Purushottam Parajuli, former High Court Judge Chandi Raj Dhakal, former Deputy Inspector General of Police Ganesh KC, and Chartered Accountant Prakash Lamsal.

The commission, mandated to operate in accordance with the Commission of Inquiry Act, 1969 (2026 BS), has already had its Terms of Reference approved. With a tenure of one year, it will collect and conduct detailed investigations into the assets held within Nepal and abroad in the names of current, retired, or former public office holders and their family members.

As per the provision, the commission must submit a report to the Office of the Prime Minister and Council of Ministers immediately upon completing an investigation of any individual, and the government is required to implement it within 45 days.

The commission has pledged to function in a fully independent, impartial, and professional manner, free from any external pressure or influence.

It will accept complaints through written, verbal, electronic means, social media, or any other medium.

While the commission may seek expert advice from various sectors as necessary during its work, strict provisions prohibit the engagement of experts with conflicts of interest, it said in a statement.

The formation of the commission aligns with the government’s anti-corruption commitment outlined in point 43 of the 100-point Governance Reform Agenda approved by the Cabinet on  March 26.

Currently, the OPMCM is screening 32 personnel required for the commission.

According to the commission, to ensure transparency, staff deployed to it will also be required to publicly disclose their asset details within one week of assuming their duties.

Published in The Rising Nepal daily on 23 April 2026.         

Home Ministry directs for service reforms at DAOs

Kathmandu, Mar, 18

The Ministry of Home Affairs (MoHA) has instructed District Administration Offices (DAOs) to establish appropriate service counters for new citizenship issuance and duplication, passports, national identity cards and minor identity cards, with a focus on making services more user-friendly.

It directed the officials on Saturday to ensure that services are delivered, as far as possible, from a single service desk, covering all stages from initiation to approval.

The directive also calls for proper management of service counters for tasks such as organisation registration and renewal, arms license renewal, and document certification, based on workload and staff availability.

Likewise, offices are asked to ensure transparent service delivery and provide waiting or rest areas for service users wherever possible.

The Ministry also emphasised expanding access to online systems so that services provided by the DAOs can be obtained digitally wherever feasible.

To manage service demand, they have been instructed to introduce token systems where necessary and to set up help desks equipped with staff and computers in easily accessible locations at entry points.

The directive further calls for the implementation of digital and audio-enabled citizen charters. Where this is not feasible, offices must clearly display all service procedures in a visible and readable format. It also requires the formation of WhatsApp groups among key administrative officials to facilitate regular coordination and streamline service delivery.

The MoHA also directed the DAOs to maintain records of complaints and ensure prompt action, including the establishment of mechanisms for receiving and addressing grievances.

According to the directives, the Chief District Officers have been instructed to adopt a zero-tolerance policy against misconduct, with legal action and reporting obligations in cases of mistreatment.

Similarly, the Ministry has also directed strict monitoring to prevent the involvement of middlemen, with enforcement measures and regular reporting through Nepal Police.

It asked to provide training and orientation programmes to staff, including those at ward offices, with a particular focus on front desk personnel.

Published in The Rising Nepal daily on 19 April 2026.       

Chronic under-spending persists

Development spending stalls at 24% as fiscal year nears end

 

Kathmandu, Apr. 18

Mobilisation of the development budget in the past more than nine months of the current Fiscal Year 2015/26 has remained pathetic at just 24.15 per cent, creating a challenge for the government to spend a large chunk of the budget expediting the projects.

Rs. 98.51 billion of the Rs. 407.88 billion earmarked for capital expenditure has been mobilised so far, while less than three months remain to utilise the remaining funds. The size of this year’s budget is Rs. 1964.11 billion

However, this year is not exclusive to this trend.

Analysis of the past six years' capital expenditures showed that it remained at or below 30 per cent, with just one exception. The government has continuously failed to utilise the budget earmarked for construction and development.

According to the statistics published by the Financial Comptroller General Office (FCGO), the government could mobilise 29.5 per cent in the first three quarters of the last FY 2024/25, about 28.3 per cent in 2022/23, above 27.6 per cent in 2021/22, and 30.2 per cent in 2020/21.

It was FY 2023/24, when the capital expenditure reached almost 33 per cent. That year, the government had downsized the annual budget to Rs. 1751.31 billion from the Rs. 1793.83 billion in 2022/23.

But the Gen-Z movement and the damage caused to the private businesses and multiple changes in the government further affected the budget mobilisation. Thus, the performance remained much below that of even the COVID-19 period in 2021 and 2022.

However, the recurrent expenditure has remained above 60 per cent in the first three quarters of the past three years after the COVID-19 pandemic.

Economists said that the poor mobilisation of the development budget has remained one of the major causes of sluggish economic growth in the past several years. While the National Statistics Office has projected a growth of 4.05 per cent in the second quarter of this year compared to the same period, the World Bank estimated that annual growth this year would remain 2.3 per cent.

The country has failed to achieve all of its targets for expenditure, revenue and economic growth in the past several years. Ironically, the government failed even to meet the revised targets in revenue and expenses.

Economist Dr. Resham Thapa said that it is unfortunate that no governments tried to finds a solution to this malady that has been troubling the nation for the past more than three decades.

“If the government couldn’t mobilise the development budget well, it would impact the progress of multi-year projects, causing delay,” he said, while adding that a robust administrative and procedural reform should be implemented to utilise the allocated financial resources.

However, Dr. Thapa maintained that since Nepal’s economic growth is largely dependent on government expenditure, it will have less impact on that aspect.

Stating that the assurance of political stability might create a favourable scenario in development work, he suggested initiating reforms in the public procurement sector and forming a special parliamentary committee or an authority to manage it.

Use capital budget in first nine months (Rs. in billions)

Fiscal Year

Annual Budget

Capital

Use %

2015/2026

1964.11

98.51

24.15%

2024/2025

1860.30

104.15

29.56%

2023/2024

1751.31

99.27

32.87%

2022/2023

1793.83

107.62

28.29%

2021/2022

1632.82

104.47

27.63%

2020/2021

1474.64

106.85

30.28%

Source: FCGO

Published in The Rising Nepal daily on 19 April 2026.       

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