Economists offer mixed reaction to govt’s policy and program

KATHMANDU: Economists have offered mixed reactions to the government’s policy and programme for the upcoming fiscal year, describing it as less ambitious than expected but more practical in certain areas.

The policy and programme presented by the government of Prime Minister Balen Shah has been described by experts as a blend of continuity and limited innovation.

“Some new, but largely less ambitious”

Former Governor Chiranjibi Nepal said the document appears generally positive but contains many previously announced programmes.

“Many programmes are repeated, but there are some concrete efforts in areas like information technology and tourism,” he said. “The challenge will be resource management for implementation.”

He added that while the policy includes good initiatives, execution will depend heavily on financial planning and capacity.

Focus on private sector and social issues

Economist Anil Raj Bhattarai said the policy appears more inclusive, covering issues ranging from landless settlements to private sector support.

He noted that the government has attempted to address multiple sectors, including transparency reforms, facilitation for non-resident Nepalis, and incentives for high-investment inflows.

“The approach aims to boost confidence across sectors, including production, industry, and development,” he said. “This reflects a more practical and less overly ambitious approach compared to the past.”

He added that the current government appears to have a stronger sense of responsibility compared to previous administrations.

“Not very smart or transformative”

However, economist Govinda Nepal offered a more critical view, saying the policy does not appear particularly innovative.

He said many programmes have been repeated from earlier plans, although some areas such as public service delivery and tax management show attempts at improvement.

He also noted that while the election promises of the Rastriya Swatantra Party were relatively sharp and focused, the policy document does not fully reflect those commitments.

Overall, economists agreed that while the policy shows some practical direction, its success will largely depend on implementation and resource allocation.