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Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has represented Rupandehi district in the House of Representatives for the past four consecutive terms. A senior leader of the CPN (UML), Paudel was first elected as a Member of Parliament from Palpa constituency-3 in the 2051 BS general election. In 2054 BS, he served as Minister for Youth, Sports, and Culture, and has since held key portfolios including Minister for Water Resources, Defence, and Finance in various governments.
Known for his balanced and consistent stance within the party, Vice Chair Paudel is regarded as a trusted leader in the CPN (UML). In this interview with Sushil Darnal, DPM Paudel discusses the national budget, monetary policy, foreign investment, and an overview of the government’s performance over the past year.
Q. How will the budget and monetary policy for the fiscal year 2082/83 contribute to economic development?
A. The budget aims to revitalize the economy by increasing production and productivity, creating employment, and attracting both domestic and foreign investment. It prioritizes key sectors such as energy, water resources, industrialization, labor, education, health, and agriculture. We believe that the effective implementation of these programs will make our economy more dynamic.
The monetary policy is also designed to support these goals. Together, the budget and monetary policy are expected to energize economic activities. Accordingly, we have projected a 6 percent economic growth rate for the upcoming fiscal year.
Q. What reforms has the government introduced over the past year to promote an investment-friendly environment?
A. The government has made significant policy and legal reforms to attract investment. These include the Financial Procedures and Financial Accountability (First Amendment) Act, 2081; the Act to Amend Some Nepal Acts Related to Improving Economic and Business Environment and Promoting Investment, 2081; the Privatization (First Amendment) Act, 2081; the Customs Duty Act, 2081; the Banking Offences and Penalties Act, 2082; and the Customs Act, 2081.
In addition, we introduced the Appropriations Act, 2082; the National Debt Raising Act, 2082; the Financial Act, 2082; the Alternative Development Financing Mobilization Bill, 2081 (currently in the House); the Internal Revenue Operation Strategy, 2081; the Public Expenditure Efficiency Standards, 2081; and the Foreign Aid Mobilization Policy, 2082.
However, challenges remain, such as meeting revenue targets, increasing capital expenditure, and removing Nepal from the Financial Action Task Force (FATF) grey list.
Q. How is the private sector performing in terms of liability repayment, revenue growth, and capital market improvement?
A. The concerns of the private sector have been acknowledged and addressed, including payment delays faced by construction companies. As a result, the sector’s confidence has improved.
We have projected an economic growth rate of 4.61 percent for the current fiscal year, up from 3.87 percent last year. The multi-year contract system has been streamlined to ensure systematic and implementation-focused project delivery.
The size of the national economy has grown by Rs 400 billion, reaching Rs 6,100 billion, and revenue collection has hit Rs 1,097 billion this year.
Q. What is the current status of remittance inflows?
A. Remittance inflows have increased by 15.5 percent in the current fiscal year, reaching Rs 1,532 billion, compared to Rs 1,327 billion in the previous year.
Similarly, our foreign currency reserves have risen to USD 18.65 billion, up from USD 14.72 billion last year. Foreign aid commitments have also increased by Rs 119 billion, totaling Rs 219 billion in the current fiscal year.
Q. As a veteran parliamentarian, how do you assess the current state of parliamentary practices?
A. Parliamentary functioning should be exemplary, with both ruling and opposition parties guided by substantive agendas. However, I am concerned by the recent conduct of the opposition, which has been disruptive and agenda-less. Boycotting Parliament without valid reasons is inappropriate.
The opposition should gain the trust of the people through constructive engagement in Parliament. Unfortunately, some opposition parties have failed to uphold this standard, displaying immaturity.
Q. There are claims that the Constitution has not been fully implemented. What is your view?
A. Most constitutional provisions have been implemented. Numerous laws have been enacted in line with the Constitution's spirit and intent. Two rounds of elections at all three levels of government have taken place, and elected representatives are actively working to fulfill their mandates.
While realizing the Constitution’s broader objectives takes time and resources, implementation is moving in the right direction. We are committed to fulfilling the remaining responsibilities effectively.
Q. Although the government has raised the issue of constitutional amendment, no concrete steps have been taken. Why is that?
A. Constitutional amendment was part of the seven-point agreement that led to the formation of the current coalition. From the outset, we’ve stated that the Constitution is not a rigid document. It should be revised following societal needs and the spirit of the time.
However, constitutional amendment is not about majority or minority-it requires a broad consensus. We are committed to pursuing it through dialogue and agreement within Parliament.
Q. There are concerns that the federal structure is not being strengthened effectively. What is your response?
A. Strengthening federalism involves implementing constitutional provisions in both letter and spirit. Coordination among local, provincial, and federal levels has improved, and the Constitution clearly defines their respective powers.
However, federalism is a new system for Nepal. We are learning through experience, addressing weaknesses and making improvements where necessary to enhance the federal structure.
Q. Social media is filled with negative comments about the current political system. What do you make of this?
A. Calls for the restoration of the monarchy are regressive and go against democratic principles. The idea of hereditary rule is incompatible with modern social science and natural justice.
The political system established through the people’s mandate must not be undermined. Efforts to delegitimize it are counterproductive.
Q. Many Nepalis, both at home and abroad, express disappointment about the state of the country. Has our system weakened?
A. Periodic elections are the democratic mechanism to test the competence of political parties and leaders. We have a system where governance is in the hands of elected representatives, and the people evaluate their performance through elections.
The system itself is not weak. While those in power must remain vigilant and accountable, we must not question the system’s foundation. I urge all citizens to support the government's positive efforts. Let us work together to lead Nepal toward prosperity, development, and social justice.
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