What has Appropriation Bill prioritised for upcoming fiscal ?

KATHMANDU, MAY 12:  The government is set to prioritise structural reforms in the financial sector and generate employment in the upcoming fiscal year (2025/26). This was gleaned from the principles and priorities as outlined in the Appropriation Bill. It was presented by the Deputy Prime Minister and Finance Minister Bishnu Poudel in both houses of the Parliament yesterday.

The major points of the bill are as follows:  

Policy and Structural Reforms for Strengthened Financial Governance

Policy and structural reforms will be introduced to enhance governance in the financial system. Regulatory bodies will be made more robust, transparent, and accountable to foster trust in the sector.

 

Expansion of Financial Literacy and Access

The government plans to improve financial literacy and expand access to financial services, while enhancing deposit and payment security systems. The productive use of remittance income will also be promoted, with efforts to address issues within the cooperative and microfinance sectors.

 

New Asset Management Company and Digital Bank in the Pipeline

In a significant move, the government will establish an asset management company to handle and monetize non-banking assets. Additionally, a digital bank is in the works, alongside reforms in the capital market to increase its dynamism.

 

Nepal Aims for FATF Grey List Exit by 2026

Nepal is targeting removal from the Financial Action Task Force’s (FATF) grey list by 2026, with plans to enhance compliance with anti-money laundering standards.

 

Emphasis on Effective Government Coordination for Development Projects

The coordination between federal, provincial, and local governments will be ensured for the effective implementation of development projects. Fiscal transfers from the federal government will be made more equitable, and national standards will be developed for financial accountability.

 

Prioritization of High-Return, Well-Prepared Public Investments

Public investment will prioritize large-scale, high-yield, and well-prepared projects. Small, fragmented, and long-term projects without secured resources will be reduced. Ongoing projects will be reprioritized or restructured as needed, and legal bottlenecks in procurement and contract management will be addressed.

 

Nepal Aims for Middle-Income Status by 2026

The government has set a target for Nepal to achieve middle-income status by 2026, with plans to meet the Sustainable Development Goals (SDGs) by 2030. Recommendations from the High-Level Economic Reform Commission will be implemented in phases.

 

Agriculture Sector Reforms and Promotion of Organic Farming

The government will review and reorient all existing agricultural subsidies toward productivity-based support. It will also promote organic and indigenous farming. Moreover, the government plans to bring recently constructed airports into full operation and enhance aviation safety.

 

Budgetary Focus on High-Return Projects and Foreign Aid Mobilization

Priority will be given to high-return, well-prepared projects listed in the Project Bank. Foreign aid will be mobilized based on national needs and priorities. A "readiness filter" will be applied to ensure the timely, cost-effective execution of projects, while addressing land acquisition and forest clearance issues.

 

Legal Reforms and Infrastructure Development for Digital Nepal

To achieve the goals of Digital Nepal, the government plans to implement legal reforms and develop infrastructure. Efforts will be made to attract private investment in the IT sector, especially for high-potential export industries, and digital public services will be streamlined for efficiency.

 

Workforce Development and Youth Entrepreneurship Programs

The government aims to align workforce skills with market needs, focusing on youth-targeted entrepreneurship programs and modern technology use. Returnee migrant workers will be encouraged to contribute their skills, capital, and expertise to national development through reintegration programs.