Nepal Makes Slight Progress in Open Budget Survey, Tops South Asia

Nepal has maintained steady progress in fiscal transparency, scoring 52 out of 100 in the International Budget Partnership’s (IBP) Open Budget Survey (OBS) 2025. The score marks a slight improvement from 50 in 2023 and reflects continued efforts to provide public access to central government budget information.

The biennial survey, published last week, highlights Nepal’s current practices in budget disclosure, public participation, and oversight. With a transparency score of 52, Nepal leads South Asian neighbors, surpassing Pakistan (45), India (44), Sri Lanka (43), Bangladesh (37), and Afghanistan (0). However, the score remains below the global benchmark of 61, considered the minimum threshold for “sufficient” transparency to support informed public debate.

Public participation remains limited, with Nepal scoring 28, indicating few formal opportunities for citizens to engage in the budget process. Oversight effectiveness is rated at 52, with audit oversight deemed “adequate” at 78 but legislative oversight weak at 39.

Freedom Forum’s Executive Chief and budget researcher Taranath Dahal noted that Nepal has yet to publish key documents such as the Pre-Budget Statement and Citizen Budget.

“The recommendations based on the survey data are highly relevant and crucial for improving the financial sector. Authorities must pay serious attention to their implementation,” he said.

Recommendations for Reform

The OBS 2025 urges Nepal to publish the Pre-Budget Statement and Citizen Budget online, expand multi-year projections in the Executive’s Budget Proposal, and strengthen disclosures in the Year-End and Audit Reports. It also recommends enhancing public participation through provincial consultations and allowing testimony during parliamentary hearings.

To bolster oversight, the survey advises requiring the Executive’s Budget Proposal at least two months before the fiscal year begins, strengthening legislative monitoring of debt and budget implementation, and ensuring timely follow-up on audit recommendations.

The Open Budget Survey is the world’s only independent, comparative research instrument assessing public access to central government budget information. Its 10th edition covers 82 countries. -- RSS