The urgent need for progressive fiscal reforms in Nepal

On the occasion of International Public Service Day, marked on 23 June, the key question for Nepal is whether we are guaranteeing every citizen’s right to access quality public services, or whether our fiscal policies are aggravating inequality, increasing future risks, and imposing additional financing pressure on citizens. Public services are not just development programmes, but rights guaranteed by the Constitution, particularly in the areas of education, health, social protection and other essential services.

Nepal has made significant progress in the last few decades in ensuring access to and availability of services in the social sector; however, the quality of the services and the level of appropriate investment is still inadequate. Considering that the international standards call for allocation of about 15-20 percent of the national budget to the education sector, the current allocation in Nepal is only about 10-11 percent. Similarly, the amount of investment in education represents only about 3.67 percent of GDP, well short of the target needed to meet the SDG goal. This situation has directly impacted three key pillars: quality, access and equity in the public education system in Nepal.