KATHMANDU, May 22: As Nepal prepares its budget for the upcoming fiscal year, former finance ministers have called for sweeping reforms to restore economic confidence, rein in government spending, and ensure more realistic fiscal planning. Their collective message emphasized the need to strengthen private sector participation, focus on infrastructure development, and move toward long-term structural transformation of the economy.
Finance Minister Swarnim Wagle, who convened the consultation in Kathmandu, said the government was in the final phase of budget preparation and would incorporate past experiences and best practices. He stressed that the new budget would aim to improve living standards on the foundation of good governance.
During the discussion, former finance ministers offered a range of recommendations. Rameshore Khanal urged the government to implement the high-level economic reform task force’s proposals, end fragmented project allocations, and remove VAT on electricity. Shankar Koirala called for opening electricity trading to the private sector, easing forest-related restrictions, expanding industrial zones, and advancing hedging policies.
Former finance ministers call for unveiling practical, implemen...
Yubaraj Khatiwada cautioned against overly ambitious revenue targets, noting limited expenditure capacity despite the possibility of a Rs 2.5 trillion budget, and suggested gradually reducing excise duties while maintaining a uniform VAT structure.
Prakash Chandra Lohani emphasized closer cooperation between government and private sector, policies to support industries of all sizes, agricultural subsidies, and expanded access to Indian markets for Nepali farm products.
Surendra Pandey recommended limiting national pride projects to a handful of major schemes, introducing land-use reforms, and promoting tourism targeting Indian visitors.
Prakash Sharan Mahat called for bold decisions to downsize state structures, restructure or privatize Nepal Airlines, lease state-owned enterprises and land, and curb collusion in large contracts.
Barshaman Pun highlighted poor returns from past infrastructure investments and urged focus on tourism infrastructure, rural markets, and local economic activities, suggesting Nepal could be branded as a hill station and wedding destination for India’s middle class.
Bishnu Prasad Paudel encouraged structural reforms, tapping mining potential, and advancing large-scale projects such as Budhigandaki.
Janardan Sharma advocated spending cuts, promotion of mining, fertilizer and pharmaceutical industries, protection of private investment, and integration of education with skills and employment programs.
The overall consensus was clear: Nepal’s upcoming budget must accelerate economic reforms, restore private sector confidence, adopt realistic fiscal targets, and lay the groundwork for long-term structural transformation.
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