A political system should ultimately serve the economic prosperity and well-being of the nation and the people. Economic development, employment, productive investment and fiscal stability should therefore be among the foremost priorities of any political system. If a system becomes excessively expensive and fails to deliver economic opportunities and sustainable development, its structure and priorities deserve serious reconsideration.
Nepal is currently facing growing fiscal pressures. Public borrowing has expanded significantly, while the government continues to rely on loans to finance a substantial part of its expenditure. The more worrying trend is the possibility of borrowing not only for development but also to meet recurrent obligations and service existing debt. Such a situation can gradually narrow the government’s fiscal space and increase the burden on future generations.
The country now faces an additional challenge: the enormous resources required for reconstruction following the devastating Rasuwa-Bhotekoshi flood of August 26, 2026. The World Bank has described the disaster as causing extensive destruction along the Bhote Koshi–Trishuli corridor and has made up to $170 million in emergency financing available to support immediate response and restoration of critical infrastructure and services.
Nepal must also bear the cost of rebuilding public infrastructure damaged during the September 2025 Gen-Z uprising. A government assessment estimated total physical damage at Rs 84.45 billion and put the cost of reconstructing damaged structures at Rs 36.30 billion. The destruction affected thousands of public and private structures and disrupted government services across the country.
Against this backdrop, the government cannot continue to expand recurrent expenditure without carefully examining its necessity and sustainability. Political parties must therefore develop a national consensus on reducing administrative costs, prioritising productive investment and strengthening domestic revenue mobilisation.
Reducing the cost of governance should not mean weakening essential public services or democratic institutions. Rather, it should mean eliminating unnecessary expenditure, duplication and political extravagance. Nepal needs a political system that is financially sustainable and capable of directing scarce public resources towards production, infrastructure, employment and economic growth.
The central question, therefore, is not merely which political system Nepal follows, but whether that system can ensure economic prosperity, fiscal responsibility and long-term national development.
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