17th September 2025, Kathmandu
In a significant and decisive move to streamline government functions and curb public expenditure, Nepal’s civil service secretaries have announced a plan to reduce federal-level positions by 20 percent.
Federal Service Positions Cut
The decision, reached during a high-level meeting chaired by Chief Secretary Ekanarayan Aryal, will result in the elimination of approximately 10,300 posts from the current total of 51,726. The revised structure will bring the total number of federal civil service positions down to around 40,000. This measure is a central part of a broader government reform initiative aimed at increasing efficiency, promoting fiscal prudence, and improving service delivery.
Specifics of the Proposed Cuts and Cost-Saving Measures
The cuts will be applied across various government bodies, including ministries, commissions, and other federal offices. The plan is to strategically eliminate redundant and unnecessary positions to rationalize the workforce without compromising essential public services. A key aspect of this reform is the abolition, merger, or transfer of government entities that are deemed superfluous. The Prime Minister and Cabinet Office Secretariat will be responsible for coordinating these structural changes, ensuring a systematic and coherent implementation process.
In addition to reducing the number of posts, the secretaries have also introduced a series of concrete cost-saving measures to address the country’s challenging fiscal situation. These measures include:
Banning Meeting Allowances: All civil servants will be prohibited from receiving meeting allowances during this period of austerity, a move that is expected to result in significant savings for the government.
Utilizing Government Venues: National-level conferences, seminars, and workshops will be required to be held in government-owned buildings and halls to minimize rental expenses. This directive also extends to local governments, which are encouraged to adopt similar cost-saving practices.
Prioritizing Vacancy Management: Despite the overall reduction in positions, the government has committed to immediately filling critical vacant posts that are essential for providing direct services to citizens. This ensures that the public’s access to essential government functions, such as healthcare, education, and public transport, will not be disrupted. The Ministry of Federal Affairs and General Administration has been tasked with overseeing this process.
The revised post structure is scheduled to be submitted to the Council of Ministers for final approval by October 6, 2025 (Ashwin 20, 2082). The Cabinet’s endorsement is the final and crucial step in a reform process that has been years in the making. The recent civil unrest and the ensuing economic challenges have provided a strong impetus for the government to accelerate these reforms, which are aligned with the principles of the long-awaited Federal Civil Service Bill. This legislation aims to modernize the civil service by addressing long-standing issues such as inefficiency, politicization, and a lack of clear career paths, and by promoting a more merit-based system. The current decision to downsize the bureaucracy is a concrete step towards achieving these broader goals.
Broader Context and Implications
This civil service reform is taking place within a wider context of administrative modernization in Nepal. The country is in the process of transitioning to a federal system, which requires a fundamental restructuring of government bodies at the federal, provincial, and local levels. The decision to reduce the number of federal civil service posts is consistent with the goal of strengthening provincial and local governments and decentralizing administrative power. A more streamlined federal civil service will be more agile and responsive, allowing it to focus on core policy-making and strategic oversight while local bodies handle direct service delivery.
The move has been welcomed by many as a necessary step towards fiscal prudence and efficient governance. The government has been under pressure to control public expenditure, which has been rising steadily, straining the national budget. The decision to cut over 10,000 jobs, while a drastic measure, is a clear signal of the government’s resolve to address the financial challenges facing the nation. It also reflects a commitment to move away from a traditional, patronage-based bureaucracy to a more performance-oriented and professional civil service. This shift is crucial for regaining public trust and fostering a more accountable and transparent government. The upcoming implementation of the reforms will be closely watched by citizens and stakeholders alike, as it will determine the future trajectory of Nepal’s public administration and its capacity to deliver on its promises of good governance and economic stability.
For More: Federal Service Positions Cut