The Ministry of Finance has held discussions on economic reforms with former finance secretaries, who have recommended bold steps to further reform the economy.
Speaking at a program organized at the Ministry of Finance on Sunday, the former finance secretaries suggested ruthlessly cutting back on unprofitable projects, focusing on major projects, making fiscal federalism more effective, holding ministries and departments accountable for capital expenditure, and enhancing coordination between federal, provincial, and local levels.
They also recommended adopting frugality in current expenditures, increasing internal resources, ensuring effective spending on projects of national pride, and minimizing the informal economy.
The former finance secretaries emphasized the need to systematize the insurance sector, cooperatives, capital markets, and corporations. They also proposed bringing the Money Laundering Investigation Department under the Ministry of Finance.
Additionally, they advised that foreign aid should be investment-focused rather than aid- and loan-driven, that climate finance should be prioritized, and that the budget should be realistic and implementable.
They further suggested that the Ministry of Finance review and integrate social security programs, phase out failing industries based on detailed studies, reconsider tax exemptions, explore additional revenue mobilization options, increase market liquidity, and pay special attention to sectors where the state has long-term liabilities.
The former secretaries also stressed the importance of prioritizing alternative financial management, setting realistic rather than overly ambitious revenue targets, increasing capital expenditure, ensuring coordination between fiscal and monetary policies, formulating policies and budgets based on factual data, enforcing existing laws effectively, maintaining policy stability, and focusing on the service sector.
They highlighted the need to improve the business environment to make it more favorable for the private sector.
Former Chief Secretary and Finance Secretary Dr. Bimal Koirala, along with former Finance Secretaries Rameshwor Khanal, Bhanu Acharya, Krishnahari Baskota, Suman Sharma, Dr. Rajan Khanal, Shishir Dhungana, Madhu Marasini, and former Revenue Secretaries Lal Shankar Ghimire and Ram Sharan Pudasaini, among others, attended the meeting.
Finance Secretary Ghanshyam Upadhyay and Revenue Secretary Dinesh Kumar Ghimire stated that they would take the former secretaries’ suggestions into consideration moving forward.
