Finance Ministry reports major reforms and policy push in first 100 days under Dr. Swarnim Wagle

KATHMANDU: The Ministry of Finance, under Finance Minister Dr. Swarnim Wagle, has outlined a wide-ranging set of reforms, policy actions, and institutional improvements achieved within the first 100 days of his tenure, focusing on legal restructuring, fiscal discipline, digital transformation, and investment facilitation.

According to the ministry’s progress report, the measures span across legal reforms, public service delivery improvements, governance restructuring, financial sector modernization, and foreign aid mobilisation, marking what the ministry describes as the foundation for a broader economic reform agenda.

Major Legal and Policy Reforms Initiated

The ministry has introduced several structural changes in economic policy and legal frameworks, including the publication of Nepal’s current economic situation report and preparation of the budget framework for FY 2083/84.

Key reforms include the formulation of a roadmap for broad economic-legal reforms aimed at improving private sector security, facilitating large infrastructure projects, and modernising investment-related laws.

The government has also amended the Economic Procedures and Fiscal Accountability Rules, 2077, delegating authority to secretaries to enable reallocation of capital expenditures, aimed at improving budget execution efficiency.

Following recommendations from the High-Level Economic Reform Commission, the ministry has moved forward with the process of repealing 15 laws, including restructuring of the Revenue Investigation Department, as part of institutional streamlining efforts.

Additionally, the Office of the Financial Comptroller General’s five-year strategic plan (2082) has been approved and implemented.

Legislative and Regulatory Advancements

During the 100-day period, the ministry has advanced multiple legislative instruments, including the drafting of the Alternative Development Finance Mobilization Act, 2083.

Several key bills have been tabled in Parliament, including:

• Economic Bill 2083
• Appropriation Bill 2083
• National Debt Raising Bill 2083
• Amendment to Nepal Rastra Bank Act, 2058
• Amendments related to Anti-Money Laundering laws

Likewise, multiple regulations have been approved and implemented, including amendments to customs, VAT, income tax, excise duty, and alcohol regulations, along with revised procedures for supplementary and special grants.

The ministry stated that these reforms have reduced legal duplication and strengthened the foundation for fiscal governance, capital market development, and public financial management.

Citizen-Centric Service Improvements

The report highlights several initiatives aimed at improving public service delivery and simplifying tax and administrative processes.

Among key achievements:

• Extension of PAN and taxpayer services to 120 local levels and Company Registrar offices
• Introduction of e-Pension Verification System, allowing pension verification from any location
• 50% reduction in customs and infrastructure development levies on petroleum imports during global supply disruptions to ease consumer burden
• Budget proposals for FY 2083/84 include raising income tax exemption threshold to NPR 1 million, restructuring health insurance, and strengthening agriculture input supply systems

The ministry stated that these measures have made public services more accessible, efficient, and citizen-friendly.

Governance and Institutional Restructuring

Significant institutional reforms were carried out across revenue administration and financial governance structures.

Key actions include:

• Organizational restructuring of the Ministry and subordinate agencies
• Abolition of the Revenue Investigation Department and redistribution of its functions
• Appointment of internal revenue officials with expanded jurisdiction across 47 offices
• Implementation of bi-monthly salary disbursement for federal employees from 2083/01/16
• Reduction in fuel allowance for officials under austerity measures

The ministry also noted progress in appointing leadership in regulatory institutions through competitive processes, including the Nepal Securities Board.

Digital Transformation in Public Finance

A major focus of the reform agenda has been the expansion of digital governance systems across financial institutions.

Systems already in operation include:

• GIOMS at the Ministry and Office of the Financial Comptroller General
• LMBIS budget management system
• C-GAS, SuTRA, and RMIS at sub-national levels
• Fully online tax filing and clearance services via the Internal Revenue Department
• Customs processing through ASYCUDA and NNSW systems
• Online customs valuation and real-time valuation databases
• Online temporary vehicle import system for visitors

These reforms aim to reduce administrative bottlenecks, improve transparency, and strengthen revenue collection efficiency.

Foreign Aid, Investment, and Infrastructure Financing

The ministry reported significant progress in securing international financial assistance and development partnerships.

Major financing agreements include:

• Nepal Digital Transformation Project – USD 90 million (World Bank & ADB)
• Greater Lumbini Area Development – USD 85 million (World Bank)
• GLOF risk protection project – USD 24.3 million (UNDP grant)
• Clean Air and Prosperity Project – USD 52.5 million (loan & grant)
• Sustainable Finance Project – USD 95 million (World Bank)
• Nagdhunga Tunnel additional financing – JPY 5.7 billion (Japan)

Several other projects are under negotiation, including customs reforms and water supply systems supported by the Asian Development Bank.

The ministry also confirmed progress on airport improvement funding worth JPY 2.85 billion in Japanese grant assistance.

Economic Diplomacy and Investment Promotion

The report highlights high-level diplomatic engagements with countries including the United States, India, China, Japan, Germany, the UK, Finland, France, South Korea, the EU, Switzerland, and Saudi Arabia.

The finance minister also participated in international forums, including a ministerial session on financing for development under the UN ECOSOC and academic discussions hosted by Harvard University and MIT.

Efforts are underway to attract foreign direct investment and improve investor confidence through legal and institutional reforms, alongside restructuring of Nepal Stock Exchange and due diligence audits of several public enterprises, including cement, steel, and industrial companies.

Governance and Anti-Money Laundering Progress

The ministry reported progress in improving Nepal’s compliance with Financial Action Task Force (FATF) requirements after being placed on the grey list.

Out of 15 required action points, 3 have been completed and 4 partially progressed, while further assessments are ongoing.

Additional measures include:

• Implementation of code of conduct for revenue officials
• Digital grievance redress system with QR-based complaints handling
• Dedicated revenue enforcement teams to control leakage and improve collection

According to the ministry, the first 100 days have laid the groundwork for structural economic transformation through legal reform, digital governance, fiscal discipline, and investment facilitation.

The government expects these reforms to strengthen public financial management, improve service delivery, enhance transparency, and support long-term economic growth.