ICAN Budget Reform Recommendations Aim to Transform Nepal’s Economic Landscape

10th May 2026, Kathmandu

The Institute of Chartered Accountants of Nepal has officially stepped forward to shape the nation’s financial future by submitting a detailed recommendation report for the upcoming fiscal year 2083/84 budget.

ICAN Budget Reform Recommendations

As the peak regulatory body for the accounting profession in the country, the ICAN Budget Reform Recommendations carry significant weight among policymakers and financial stakeholders. The proposal outlines a strategic roadmap focused on enhancing transparency, fostering investment, and modernizing traditional sectors such as agriculture and cooperatives. By addressing systemic bottlenecks, the institution aims to create a more resilient and business friendly environment in Nepal.

Taxation Reforms and Support for Professional Education

A primary pillar of the ICAN Budget Reform Recommendations involves critical changes to the current tax regime. The institution has specifically requested income tax exemptions on the savings of the Chartered Accountants institution itself, alongside VAT exemptions for educational and training services. The rationale behind these suggestions is to lower the barriers to high quality professional development. By making accounting education more accessible and financially sustainable, Nepal can build a more robust workforce capable of maintaining international financial standards. These tax reliefs are seen as essential investments in the intellectual capital of the nation’s financial sector.

Promoting Nepali Professional Firms on the Global Stage

In an effort to strengthen domestic capacity, the report emphasizes the promotion of local accounting and consulting firms. One of the standout ICAN Budget Reform Recommendations is the mandatory procurement of professional services from Nepali firms up to a specific limit. Furthermore, the institution proposes a framework that allows local firms to enter into partnerships with foreign entities for large scale projects. This dual approach is designed to protect domestic interests while ensuring that Nepali professionals gain exposure to international best practices and complex global projects, effectively bridging the gap between local talent and global standards.

Improving Public Finance Management and Accountability

To ensure that taxpayer money is utilized efficiently, the institution has proposed a series of reforms for public financial governance. These include the implementation of scientific evaluation systems for selecting projects and the introduction of mandatory internal audits at the local government level. Perhaps most importantly, the report calls for rigorous cost benefit analysis for all large infrastructure and development projects. These ICAN Budget Reform Recommendations are aimed at curbing wasteful spending and ensuring that every rupee invested by the government yields maximum social and economic returns for the citizens of Nepal.

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Modernizing Agriculture and Regulating the Cooperative Sector

The agricultural sector, which remains the backbone of the Nepali economy, is also a focal point of the report. ICAN suggests revising land ceiling policies to encourage large scale commercial farming and providing tax exemptions on agricultural production. Additionally, the legal regulation of contract farming is proposed to provide security to both investors and farmers. On the other side of the financial spectrum, the institution has raised concerns about the cooperative sector. The ICAN Budget Reform Recommendations call for a unified regulatory authority and mandatory audits for large cooperatives to restore public trust and manage the financial risks associated with non banking assets.

Financial Markets and Investment Facilitation

To boost liquidity and attract much needed capital, the report suggests the monetization of public assets and the establishment of a dedicated diaspora investment fund. This would allow Nepalis living abroad to contribute directly to the nation’s development through formal financial channels. For small and medium enterprises, the institution recommends a one door service system and the implementation of project based lending. These measures are intended to simplify the business lifecycle and provide entrepreneurs with easier access to credit, thereby stimulating local innovation and employment.

Embracing AI, Blockchain, and Future Technologies

Looking toward the future, the ICAN Budget Reform Recommendations highlight the urgent need for a regulatory framework governing emerging technologies. The institution has urged the government to establish a specialized unit for policy development regarding Artificial Intelligence, Blockchain, and Cryptocurrency. As these technologies continue to redefine global finance, ICAN believes that Nepal must be proactive in creating a secure and transparent digital ecosystem. By preparing for digital innovation today, the government can ensure that Nepal remains competitive in an increasingly tech driven global economy while mitigating the risks associated with unregulated digital assets.

Conclusion A Strategic Vision for a Transparent Economy

The comprehensive report submitted by the Institute of Chartered Accountants of Nepal represents a holistic vision for the country’s economic growth. From minute tax adjustments to broad structural reforms in technology and agriculture, the ICAN Budget Reform Recommendations provide a blueprint for a more transparent and prosperous Nepal. If these suggestions are integrated into the fiscal year 2083/84 budget, they could provide the necessary stimulus for sustainable development, improved governance, and a significant boost in both domestic and foreign investment. The focus remains clear a stronger economy built on the foundations of professional integrity and modern financial policy.

For More: ICAN Budget Reform Recommendations