Fiscal Nepal
First Business News Portal in English from Nepal
Prez Ramchandra Paudel Policy Programme
KATHMANDU — The Government of Nepal has unveiled an ambitious and wide-ranging national policy agenda for fiscal year 2083/84 (2026/27), pledging tax relief for the middle class and businesses, major governance reforms, expansion of digital infrastructure, accelerated hydropower development, modernization of agriculture, stronger social protection, and large-scale infrastructure construction aimed at reviving economic growth and restoring public confidence.
Presenting the government’s Policy and Programme at a joint sitting of the Federal Parliament on Monday, President Ram Chandra Paudel outlined what the government described as a reform-oriented blueprint intended to strengthen Nepal’s economy, improve governance, expand employment opportunities, and modernize public service delivery.
The policy document, endorsed earlier by the Cabinet, serves as the government’s strategic foundation for the upcoming national budget scheduled for Jestha 15 (May 29, 2026) and is expected to guide Nepal’s fiscal priorities amid slowing domestic demand, weak capital expenditure, declining industrial confidence, and persistent outmigration of young workers.
One of the headline announcements was the government’s commitment to reduce the tax burden on entrepreneurs and the middle class, signaling potential cuts to personal and business tax rates through the upcoming budget. While exact tax measures were not specified, the policy framework indicated a broader effort to rationalize Nepal’s tax structure to stimulate investment and consumption.
The government also pledged to make Nepal’s capital market safer and more competitive, while strengthening anti-money laundering systems and promoting long-term capital mobilization through bond markets, debt instruments, and infrastructure financing mechanisms.
Authorities said reforms would prioritize employment-oriented production, industrial competitiveness, and greater private sector participation in economic expansion.
The government announced plans to transform Nepal’s agriculture sector through commercialization, climate-resilient food systems, insurance expansion, veterinary modernization, and digital technologies. Livestock vaccination campaigns will be expanded in coordination with provincial and local governments to combat animal diseases and improve food productivity.
Small farmers will receive broader access to crop and livestock insurance, while insurance premium subsidies and claims processes will be integrated into digital systems. Sustainable agricultural methods, environmental farming systems, and technological interventions will be used to align Nepal’s farm economy with a green growth model.
The government has promised a major push toward sustainable forest management, including expanding industries linked to timber, medicinal herbs, eco-tourism, and biodiversity conservation. Authorities also announced plans to establish a “Nepal Carbon Authority” to expand carbon credit initiatives and ensure local forest communities benefit directly from climate financing.
In response to growing climate risks, Nepal will establish a Forest Fire Early Warning Centre, increase real-time monitoring using drones and satellite technology, and strengthen systems to combat illegal deforestation and encroachment.
Kathmandu Valley’s worsening air pollution also featured prominently, with commitments to modernize brick industries, tighten emissions controls, and update the capital’s air quality improvement action plan.
Seeking to position Nepal as a regional clean energy hub, the government reiterated its ambition to sharply increase electricity generation and simplify project approvals through a single-window system by reforming laws related to energy, forests, land, and environmental clearances.
Private sector participation in electricity generation, transmission, distribution, and energy trade will be expanded, while the government pledged to boost domestic power consumption through energy-based industries. Cross-border electricity trade agreements will also be leveraged to attract long-term investment.
The policy additionally promotes green hydrogen, green ammonia, renewable energy, and clean industrial production, supported by tax exemptions, concessional electricity tariffs, and investment incentives. Off-grid solar and renewable systems will be expanded to underserved communities.
In one of the most significant policy shifts, Nepal officially declared the Information Technology (IT) sector a national strategic industry, committing to expand software exports, digital services, artificial intelligence, cybersecurity, and green computing.
The government plans to establish digital parks, high-capacity data centres, and public digital infrastructure, while offering financial incentives, tax benefits, and government co-investment for innovation and export-oriented IT businesses. The policy aims to position Nepal as a regional technology and digital services hub.
Authorities also pledged to reduce Nepal’s digital divide through expanded broadband access, telecom modernization, and stronger cyber security standards.
Tourism emerged as another priority area. The government pledged to strengthen Nepal’s identity as a destination for mountain tourism, adventure tourism, wellness tourism, spiritual tourism, and cultural experiences.
Under the proposed “Devbhumi Nepal” campaign, Nepal aims to market sites such as Pashupatinath, Lumbini, Muktinath, and Janakpur more aggressively in global tourism markets. Community-based tourism and home-stays will be expanded, with a target of integrating thousands of new village tourism operations into digital booking platforms.
The aviation sector will also see major reform. The government committed to operationalizing and modernizing Nepal’s international airports, introducing e-gates for immigration, digitizing tourist visas, and attracting more international airlines to Pokhara and Gautam Buddha International Airports.
The government announced a National Employment Policy integrating education, skills, labour market information, and employment services into a unified system.
A nationwide apprenticeship programme based on a “Learn While You Earn” model will be launched, while remote work policies will allow Nepalis to work for international employers while staying inside Nepal. Returned migrant workers will receive internationally recognized certification through a digital skills passport system.
Nepal also declared the upcoming decade as an “Employment Promotion Decade” (2083–2092), seeking to reduce dependency on foreign labour migration and shift remittance income toward productive investment.
The government promised free education up to secondary level, curriculum modernization, AI-based learning systems, digital classrooms, and high-speed internet expansion to 10,000 community schools. Universities will be restructured to better align with labour market demand.
In healthcare, authorities pledged a restructuring of the national health insurance programme, expansion of telemedicine, improved disease surveillance, and the creation of a National Health Accreditation Authority and a national biological research laboratory. Mental health services and preventive healthcare will receive greater emphasis.
The government also committed to expanding disability-friendly infrastructure, strengthening women and child protection systems, and declaring Nepal street-children free within the upcoming fiscal year.
On infrastructure, the government pledged to accelerate major highways including the Madan Bhandari Highway, Postal Highway, North–South Corridors, and Kathmandu–Terai Fast Track. All local governments will be linked through year-round road networks.
Kathmandu’s public transport modernization includes plans to advance a Bus Rapid Transit (BRT) system, while studies on the Kerung–Kathmandu and Raxaul–Kathmandu railway projects will continue. Smart traffic systems using AI-based cameras and GPS tracking will also be expanded to reduce road accidents.
Urban programmes will prioritize affordable housing, improved waste management, clean drinking water, and resilient city planning amid increasing climate and disaster risks.
The policy document also emphasizes governance reform, including digital public administration, procurement transparency, faster project execution, and anti-corruption systems. A “zero-day procurement policy” will seek to eliminate delays in public spending and reduce last-minute fiscal expenditure distortions.
The government plans to implement a national digital governance blueprint, strengthen interoperability among public institutions, and integrate citizen services through digital platforms.
Despite the breadth of promises, implementation remains Nepal’s biggest challenge. Previous governments have announced similarly ambitious policy agendas only to face criticism over weak execution, bureaucratic bottlenecks, political instability, delayed procurement, and low capital spending. With the annual budget due later this month, attention will now turn to whether the government backs its ambitious policy vision with concrete financing, institutional reforms, and measurable execution plans.
Your email address will not be published. Required fields are marked *
Comment *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
