Before and After Constitution 2072: An Evaluation of Nepal’s Budgetary Trends
Summary
Nepal's budgetary trends over two decades show persistent gaps between projected and actual revenues, with challenges intensified after the Constitution 2072 and the 2015 earthquake. Debt financing and aid dependency have increased, highlighting structural inefficiencies.
Key Points
- Nepal consistently achieved about 87% of projected total revenue over the last two decades, with a decline after Constitution 2072.
- Tax revenue realization averaged around 95%, but aid receipt lagged behind projections with an average of 70%.
- Debt financing's share in the budget increased post-Constitution 2072, particularly domestic borrowing showing rapid growth.
- Structural inefficiencies and institutional capacity remain key challenges impacting fiscal implementation and resource mobilization.
