KATHMANDU, June 26: Three months into office, Prime Minister Balendra Shah (Balen)-led government is attempting to reshape governance through an ambitious reform agenda, but turning promises into visible results remains a major challenge.
Built on the single majority of the Rastriya Swatantra Party (RSP), the government has moved ahead with its “100-point governance reform agenda,” pledging a shift toward result-oriented governance.
The first Cabinet meeting held after Shah took the oath as prime minister on March 27 endorsed the ambitious reform package, setting the tone for a government that promised to break away from traditional political practices.
In its first three months, the government has focused on administrative restructuring, digital governance, corruption control, ending political appointments and reforms in the education sector. However, implementation has faced hurdles, including legal complications, institutional resistance, court interventions and political controversies.
Several key commitments under the reform agenda remain incomplete. The government’s decision to reduce the number of ministries from 25 to 17 was presented as a move toward cost-cutting and administrative restructuring. It also introduced performance indicators for ministries and began preparing a code of conduct for civil servants.
The government has highlighted the simplification of public services, expansion of the electronic government procurement system and increased digital monitoring of government agencies as major achievements. Its decision to investigate the assets of politicians and senior government officials has also raised expectations for stronger accountability.
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The asset probe commission formed to examine the property details of senior political leaders and officials who held high-ranking positions since 2006 has accelerated its work. The government has portrayed increased monitoring of property declarations and financial transparency among public officials as a key achievement of its good governance campaign.
However, challenges remain on the economic front. Although liquidity in the banking sector has improved, economists say there has been no significant progress in investment expansion, industrial operations and job creation. They argue that improving revenue collection has also remained difficult despite government efforts.
Corruption control has remained one of the government’s major priorities. While the government has intensified reviews of some high-profile cases, investigations and administrative monitoring, analysts say bringing major corruption cases to legal conclusions will take more time. According to them, the government has succeeded in sending a political message against corruption, but converting that message into concrete outcomes remains a challenge.
The government had also announced plans to accelerate national pride projects. Although some projects have reportedly gained momentum, many continue to face structural problems, budget constraints and contract-related challenges. Questions have also been raised over coordination with local governments and effective use of development spending.
The government is under pressure to deliver results directly felt by citizens, particularly in employment generation, inflation control, service delivery and corruption reduction.
Although the government has taken steps reflecting administrative reform and good governance, it has yet to produce expected outcomes in economic reform, development activities and areas affecting citizens’ daily lives. The government had pledged to boost economic activity, improve private sector confidence and create an investment-friendly environment, but the private sector says the impact of those reforms is yet to be visible.
Under the 100-point agenda, the government has fulfilled commitments related to salary increases for government employees and tax relief. However, the economy has not gained the expected momentum, and citizens are still waiting for visible improvements in investment, industrial growth and employment.
The education sector has seen some changes during the government’s first three months. Results of national examinations, which were often delayed for months in the past, were published within the scheduled academic calendar. The government also revised the letter grading system, allowing students receiving non-grades (NG) in all subjects to sit for chance examinations.
The introduction of free grade sheet downloads and online re-totalling applications through the Nagarik App has eased public service delivery. However, the government’s decision to remove political party-affiliated student organizations from schools and universities has triggered legal and political debate. The Supreme Court (SC) issued an interim order on May 11 not to remove student organizations from universities after eight student organizations jointly filed a writ petition against the government’s decision.
The government’s plan to end politically affiliated trade unions in civil service, teaching and university sectors has entered the implementation stage.
Within 24 hours of launching its reform agenda, the government moved aggressively on digital regulation by shutting down illegal online betting apps and websites. It has also started testing a government courier service to deliver passports and driving licenses to citizens’ homes. However, the goal of fully implementing “faceless governance” and providing 100 percent online public services through the Nagarik App remains unfinished.
The government had prioritized tax system reform, controlling revenue leakage, strengthening private sector confidence and creating jobs. However, systems such as the “red flag” mechanism to identify suspicious banking transactions and mandatory e-billing for large businesses remain stalled due to technical challenges. The announcement to operate free “blue buses” for women in all seven provinces also appears to have remained largely on paper.
Resolving problems related to landless people and unmanaged settlements has been another major priority of the Balen government. Work on drone surveys, GIS mapping and data collection has begun. Although some legal amendments have opened the way for resettlement, identifying beneficiaries and ensuring permanent management remain at an early stage.
The government began removing or clearing squatter settlements located along riverbanks and public land in the Kathmandu Valley from April 25.
The campaign triggered protests and legal challenges, with displaced people demanding proper rehabilitation. The government removed settlements using bulldozers, arguing that it would manage the landless population. However, it has faced criticism that arrangements for food, shelter and clothing for those displaced have yet to be ensured.
Prime Minister Shah has said in parliament that resolving an issue that remained unsolved for 35 years cannot produce immediate results and that proper management will require time.
