Ensuring effective budget implementation through Public–Private Partnership

KATHMANDU: The Confederation of Nepalese Industries (CNI), as the leading representative body of Nepal’s productive and service sectors, has consistently collaborated with the Government of Nepal and relevant stakeholders for the effective implementation of national plans and programs. We have always placed the broader economy at the center of our policy advocacy and aligned our work accordingly.

For several years, CNI has been providing objective and data-backed suggestions during the formulation of the national annual budget. We are grateful that the Government of Nepal has acknowledged many of these recommendations and reflected them in the national budget speech.

A good budget is only meaningful if it is effectively implemented. With that in mind, CNI initiated the CNI Budget Watch campaign, now running continuously for the past four fiscal years. This initiative enables constructive private sector participation, ensuring that commitments made in the budget are actually executed on the ground.

Need for Active Private Sector Role in Budget Monitoring

Our collective experience shows that although the annual budget may incorporate private sector perspectives and look promising on paper, implementation often remains weak. This is precisely why CNI began Budget Watch — to contribute constructively to monitoring the implementation of budget provisions, with clarity on responsibilities, timelines, and policy reforms required.

Only through successful budget execution will capital expenditure increase, stated targets be met, and the economy expand through policy reform. Therefore, effective implementation of the budget is absolutely essential — not only for this fiscal year but for the structural transformation of the economy.

The core objective of Budget Watch is to identify the obstacles in budget implementation through deeper interaction among government, private sector and experts, and to offer constructive solutions. Over the years, we are seeing increasingly positive impact from this initiative.

Previous Progress and This Year’s Agenda

Last fiscal year, CNI identified 63 budget provisions relevant to the private sector, and also defined which agencies were responsible for taking action. Our monitoring found that 25.4% (16 provisions) were fully implemented, 47.6% (30 provisions) partially implemented, and 27% (17 provisions) showed no progress. This clearly indicates that ministries and government bodies must become more disciplined in carrying out the commitments made in the budget.

This year, we have broadened our scope and identified 74 private sector and economic reform provisions in the budget. We have categorized these into seven thematic areas, with plans to hold targeted dialogue programs for each area. We are confident this will help the government achieve the targets outlined in the FY 2082/83 budget.

Commitment to a $100 Billion Economy

We strongly believe that economic transformation must be led by the private sector. For that, the government must adopt forward-looking policies that facilitate business, investment and industrial growth. Legal and policy reforms are not optional — they are essential prerequisites. To support this, CNI has invested significant time and research into drafting proposals for legal reform, many of which have already been reflected in the government’s ordinance-based changes. This shows that the government is serious about policy reform, which we appreciate.

The government’s vision of Prosperous Nepal, Happy Nepali is shared by all of us. Every Nepali hopes to see national prosperity within our generation. To achieve this, we must fully utilize domestic resources and attract both domestic and foreign investment. In this spirit, CNI has committed itself to helping expand Nepal’s economy from the current USD 44 billion to USD 100 billion within the next decade. Achieving double-digit economic growth will require legal clarity, policy agility and effective budget implementation.

This may not be a new slogan for us — CNI has always advocated for such economic ambition — but now is the time to make it actionable and result-oriented. CNI stands fully ready to move forward in any way necessary.

Final Appeal for Coordinated Effort

We appreciate the government’s effort to introduce a regular reporting system to track budget implementation at the ministerial level. CNI, through the Budget Watch initiative in partnership with the Society of Economic Journalists Nepal (SEJON), will prepare quarterly budget implementation reports to provide constructive feedback to the government. We are confident that better implementation this year will help refuel our slow economy and bring us closer to the goal of a USD 100 billion economy.

We also want to convey that the CNI is fully prepared to offer any support or coordination required from the private sector for effective budget implementation. Ultimately, line ministries have the greatest responsibility in executing the budget; therefore, we look forward to working more closely with the respected secretaries and relevant ministries throughout this fiscal year.

Mr. Birendra Raj Pandey is President of the Confederation of Nepalese Industries (CNI). This article represents the views expressed by Pandey during the Budget Watch program organized by CNI in Kathmandu.