Revenue Allocation in Federated Nepal
The constitution of Nepal 2015 provided the fiscal federalism model where the responsibilities are shared among three tiers of government including: central, province and local level. Read more
Building Stronger Macroeconomic Policy Frameworks and Institutions
From a macroeconomic perspective, Nepal hit a sweet spot in 2016/17. Real GDP growth rebounded strongly, inflation declined to the lowest level in many years, the current account was roughly in balance, and international reserves rose further. Fiscal spending increased substantially but the overall balance remained within manageable limits. Risks from brisk credit growth were of concern but other economic outcomes were generally encouraging. Read more
Political Risk in Federalism: Implications for Nepal’s Economy
With frequent change in political regime, Nepal has always been in the range of high political risk. Likewise, federalism which is an experiment yet to be tested in Nepal, accompanies several political risks, some of which are briefed below. Read more
New Federal Nepal- A glimpse
With the completion of the Federal and Provincial election Nepal will begin a new political chapter guided by the notion of federalism. As mentioned above there seems to be a multifaceted benefits of federalism, however economic cost of the system is of primary concern. Put differently, under federalism the ability of each state to thrive economically will be a major issue as they have to be self sustainable. Read more
Economic Impact of Elections
There is a general consensus that the election period witnesses a slowdown in economic activity. Uncertainty is marked as a key variable that affect market indicators and lead to slowdown of the economy. Read more
China’s Belt and Road Initiative and Implications for Nepal: Proceedings Report
The Belt and Road Initiative (BRI) is motivated by the ‘China experience’; the experience of being one of the major economies within a span of 25 years. Looking at the historical growth of China’s economy, Zhu Rongji, the-then Mayor of Shanghai, was mulling over how to transform China’s state-owned enterprises to multinational corporations. Read more