13th May 2025, kathmandu
Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has said that economic reform will remain a key focus of the upcoming national budget. He shared this commitment during a consultation meeting with development partners in Kathmandu.
Nepal Budget 2025
“We started economic reforms some time ago,” said Minister Paudel. “We are already seeing positive results. We will give these reforms even greater importance in the days to come.”
He highlighted that the government has introduced several legal and policy changes. These include amendments through ordinances and suggestions from the High-Level Economic Reform Advisory Commission. According to him, these reforms are shaping the future of Nepal’s economy.
The upcoming budget, he noted, will promote private sector growth. It will aim to generate employment, increase production, and improve productivity. Strengthening the national economy remains the ultimate goal.
Efficient Use of Limited Resources
Minister Paudel also acknowledged the current financial challenges. He said the government faces a tight situation regarding resource availability.
To address this, he stressed the importance of budget discipline. The government plans to adopt cost-saving measures and cut unnecessary spending. Limited funds will be allocated to areas that can generate the highest possible returns.
“Our budget will focus on frugality,” he said. “We will make sure that every rupee brings value. Efficiency in spending is our goal.”
Better Use of Foreign Aid
In addition, the Finance Minister spoke about foreign aid. He stated that Nepal would align foreign assistance with national needs and priorities. The government plans to ensure its effective and proper use.
He said that improving capital expenditure performance is also a priority. Capital spending often faces delays and inefficiencies, and the government wants to fix that.
Paudel expressed confidence in the upcoming budget. He believes that once it is presented in Parliament, stakeholders will recognize it as realistic and balanced.
He also thanked international development partners. He asked for their continued support in Nepal’s development journey.
Budget Will Build Trust and Discipline
Finance Secretary Ghanshyam Upadhyay also spoke at the meeting. He said the upcoming budget would focus on building economic discipline. It will also aim to restore the confidence of the private sector.
He explained that maintaining trust is key to driving investment and economic growth.
Signs of Economic Improvement
Dhaniram Sharma, the head of the International Economic Cooperation Coordination Division, provided an update on the economy. He said Nepal’s economic indicators have improved compared to last year.
According to Sharma, the economy is on a recovery path. This shows that past policy efforts are beginning to work.
Suggestions from Development Partners
Development partners also shared their thoughts during the meeting. They advised the government to improve revenue mobilization and use resources more efficiently.
They called for realistic budgeting and better implementation. Several representatives said they were willing to increase cooperation in the future.
They encouraged Nepal to continue with reforms and maintain transparency. Many said that international support would grow if Nepal ensured accountability and strong governance.
Broad Participation in Consultation
The meeting was attended by representatives from several countries and international organizations. These included India, China, the United States, the United Kingdom, Japan, South Korea, Australia, Norway, Germany, and Finland.
Representatives from the European Union, World Bank, Asian Development Bank, United Nations, International Monetary Fund, and World Health Organization also participated.
The broad participation showed strong global interest in Nepal’s economic future.
Way Forward
The government now faces the challenge of balancing ambition with reality. It must boost investment, create jobs, and strengthen the economy while managing limited resources.
The focus on private sector growth, spending discipline, and aid effectiveness has set a clear direction. The development partners have expressed support. Now, the government must turn these discussions into action.
As the new budget nears finalization, all eyes will be on how these promises take shape in actual policy.