Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The government has announced a major fiscal and public finance reform package, including plans to automate tax administration, integrate scattered public funds, and channel state resources into high-return development projects.
As part of the 100-point governance reform agenda approved by the Cabinet on Chaitra 13, the Ministry of Finance Nepal has been tasked with preparing a comprehensive action plan within 45 days to automate tax administration, curb revenue leakage, and simplify taxpayer services.
The planned reforms aim to make Nepal’s revenue system more transparent, digital, and efficient, with a strong emphasis on compliance and ease of doing business.
A key component of the reform is the integration of 139 scattered government funds, many of which are currently operating in a fragmented, overlapping, or inefficient manner. The government has acknowledged that this fragmentation has weakened the effective utilization of public resources.
To address this, authorities will prepare an investment framework within 60 days, consolidating funds of similar nature and mobilizing them into high-return projects. The move is expected to significantly improve capital efficiency and accelerate infrastructure and development financing.
In addition, the government plans to mobilize idle deposits held by courts, government offices, and other agencies. These funds, currently sitting unused as deposits or guarantees, will be brought into productive use through a legal framework to be prepared within 60 days.
“Large amounts of deposit funds held by courts and public institutions have remained idle and unused in development. A legal basis will be established within 60 days to mobilize such resources,” the government stated in its reform document.
On tax administration, the reform agenda outlines a shift toward full automation, aiming to reduce human interface, increase accountability, and minimize opportunities for corruption and inefficiency.
The government has also mandated that large businesses must implement e-billing systems within one month, making digital invoicing compulsory to enhance transparency and track transactions in real time.
Further reforms include modernization of the customs system to align with trade restructuring, as well as strict enforcement of Maximum Retail Price (MRP) labeling in the market to protect consumers and ensure pricing transparency.
These measures collectively signal a strong push by the Ministry of Finance Nepal to overhaul Nepal’s fiscal governance architecture, improve revenue mobilization, and direct public funds toward productive sectors.
Economists say the success of these reforms will depend on implementation capacity, institutional coordination, and the government’s ability to enforce digital compliance across businesses and public agencies.
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