Summary: Prime Minister Balen Shah plans to reduce the number of ministries from 22 to 17. Alongside this, the government is preparing to cut the number of secretary posts. A Restructuring Management Secretariat will be established to oversee staff management and ensure uninterrupted service through a transition roadmap. 23 Chaitra, Kathmandu.
Shortly after his appointment as Prime Minister, Balen Shah formed a 15-member cabinet about one and a half weeks ago. Currently, there are 22 ministries, but the government plans to assign some ministers responsibility for two ministries whose functions overlap, effectively consolidating ministries. Soon after the government was formed, the cabinet prepared a 100-point action plan that included a target to reduce ministries to 17 under the theme of ‘Administrative Reform, Restructuring, and Economy’.
With the Ministry of Industry, Commerce and Supplies and the Office of the Prime Minister and Council of Ministers holding ministry-like roles, the government is proposing to merge such ministries and assign ministers accordingly. A plan to reduce the number of ministries within a month also includes managing secretary posts. To facilitate this, the government will establish a Restructuring Management Secretariat within the Office of the Prime Minister and Council of Ministers. This secretariat will have two primary functions: first, to manage staff promotions to avoid any disruption in service; and second, to prepare a transition roadmap to ensure service continuity. As the number of ministries decreases, a significant reduction in secretaries is expected. Currently, besides the Chief Secretary, four secretaries serve in the Prime Minister and Council of Ministers’ office.
Secretarial posts have also been designated in smaller agencies under the Prime Minister’s Office, including Nepal Trust, Public Procurement Monitoring Office, and Vigilance Center. Even these small entities have secretary-level positions. The Ministry of Finance has two secretaries overseeing economic and revenue matters, while the Office of the Auditor General also has a dedicated secretary. The Ministry of Health allocates secretaries according to health and administrative responsibilities. Beyond ministries, multiple commissions, agencies, and constitutional bodies have more than one secretary. Secretarial slots exist in bodies such as the Water and Energy Commission, the Commission for Investigation of Abuse of Authority, the Election Commission, and the Public Service Commission. The offices of the Auditor General, Attorney General, and Federal Parliament Secretariat each have four secretaries. According to an Under-Secretary from the Prime Minister’s office, secretarial posts in executive agencies will be prioritized for review. With upcoming cuts, ministries that are merged will retain only one secretary out of the previous two. Secretarial numbers will definitely decrease in ministries with two or more secretaries. Positions in bodies where secretaries are deemed unnecessary will also be reviewed.
Sudip Dhakal, Policy, Administration and Good Governance Advisor to Prime Minister Balen Shah, confirms that a committee has already been formed to reduce the number of ministries. He said, “The committee has been formed and is likely working. No further information is available at this time.”
Background on Ministry Reduction: On 7 Mangsir 2078 (November 2021), the government amended the Work Division Regulations to establish 22 ministries, all with secretarial posts. After reducing five ministries, at least five secretary positions will be automatically removed. However, sources in the Prime Minister and Council of Ministers’ office indicate no immediate cuts in secretary numbers. According to the source, four secretaries are expected to retire by the end of Ashad (mid-July). The strategy for reducing secretaries relies on not replacing vacant posts. Some under-secretaries awaiting promotion may experience delays, and some will retire at age 58 without becoming secretaries.
Structural Changes to Come: At the federal level there are currently 63 secretarial posts, plus 7 chief secretaries at the provincial level, totaling 70 secretaries. Chief secretaries stationed in provinces are part of the federal civil service. In the health sector, at the 12th level (equivalent to secretary), there are four officers. The number of under-secretaries is approximately 650. The government has yet to finalize the allocation of posts from chief secretary to secretary. According to the 100-point plan, the Restructuring Management Secretariat will determine the remaining organizational framework. In a few months, a regulatory bill will be presented to the federal parliament that will establish various standards and forms for staff management.
Previous Report May Prove Useful: Questions have repeatedly arisen about the federal civil service having surplus staff. Complaints have surfaced alleging selfish interests have influenced the increase in secretary posts. Three years ago, a similar question about secretary numbers led the government to form a review committee. Chaired by then-Secretary Laxman Aryal, the committee recommended reducing the number of secretaries in 2079 (2023) and broadening management for secretaries and under-secretaries in several areas. The report advised reducing secretaries from ministries with two secretaries, such as Industry, Agriculture and Livestock, Health, Education, Science and Technology, and Energy ministries. It recommended limiting secretaries to 50, creating 80 additional secretary-level posts, and capping under-secretaries at 628. The committee suggested cutting secretarial posts in some commissions deemed unnecessary and reallocating them as additional secretaries. They also recommended appointing additional secretaries to constitutional bodies and agencies with more than two under-secretaries. For promotion to secretary, the report stressed prioritizing candidates under 50 years old, with a clean record and good reputation, backed by legal and policy provisions. It also proposed cluster-based staff deployments for the highest-ranking gazetted officers and setting the number of provincial ministries accordingly.
