Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: In a significant fiscal reform move aimed at stabilizing Nepal’s economy and curbing rising recurrent expenditure, the Ministry of Finance under the leadership of Dr. Swarnim Wagle has introduced sweeping cost-control measures, including the abolition of advisor and personal secretariat facilities for most political office holders.
According to the newly unveiled standards, only top constitutional positions—including the President, Vice President, Prime Minister, Speaker of the House of Representatives, and Chairperson of the National Assembly—will retain the authority to appoint advisors. All other political office holders across federal, provincial, and local levels will no longer be allowed to hire advisors.
In a further tightening of administrative expenditure, the government has completely scrapped the provision of personal secretaries for Members of Parliament and other political appointees, marking a major shift in long-standing privilege structures.
The Ministry has also announced a moratorium on the creation of new permanent positions, except for essential technical roles. Instead of expanding the permanent workforce—which creates long-term fiscal liabilities—the government will increasingly rely on outsourcing and consultancy services when necessary.
As part of broader structural reforms, overlapping functions and duplicated organizational units across the three tiers of government will be immediately eliminated. The policy also strictly prohibits hiring employees on temporary or contract bases beyond approved quotas.
To further reduce unnecessary public spending, the government has introduced stringent rules on official travel and events. Foreign visits funded by the state will now be limited to essential missions only. Where feasible, Nepal’s diplomatic missions abroad will represent the government.
Delegation sizes have also been capped: visits led by the Head of State or Government will be limited to a maximum of 10 members, while other official trips can include no more than three participants. Trainings and seminars must now be conduct in governmental facilities, with priority given to virtual platforms whenever possible.
Additionally, local governments with excessive staffing will undergo immediate organizational and management (O&M) surveys to downsize redundant positions and structures.
The Ministry emphasized that the overarching objective of these reforms is to eliminate wasteful spending, enhance administrative efficiency, and ensure a more sustainable fiscal framework as Nepal navigates ongoing economic challenges.
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