Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The incoming government led by Prime Minister Balendra Shah is preparing a major restructuring of ministries, with at least five ministries set to be merged as part of efforts to streamline governance.
According to sources at the Prime Minister and Council of Ministers Office, the Cabinet—expected to be formed with around 15 members—will assign dual portfolios to some ministers, paving the way for formal mergers after Cabinet approval.
Based on the proposed structure, the following ministries are likely to be merged:
Urban Development with Physical Infrastructure and TransportYouth and Sports with Education, Science and TechnologyDrinking Water with Health and PopulationLand Management, Cooperatives and Poverty Alleviation with Federal Affairs and General AdministrationForest and Environment with Agriculture and Livestock Development
Officials say the mergers will be formalized after the first Cabinet meeting amends the Government of Nepal’s Rules of Business, which legally define ministerial structure and responsibilities.
Prime Minister Shah is expected to retain Defence and Industry portfolios separately, with no immediate plan to merge them.
Currently, Nepal has 21 ministries under the existing Rules of Business (introduced in 2018), or 22 including the Prime Minister’s Office. The restructuring is expected to reduce the number of ministries to around 16, signaling a shift toward a leaner executive structure under the Rastriya Swatantra Party-led government.
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