The government has introduced the Third National Strategy for Public Financial Management Reform with an implementation plan aimed at upgrading public financial management information systems within the current fiscal year. A mechanism will be established to automatically receive daily reports from the funds of all three tiers of government, and a policy to integrate all foreign aid into the budget system is scheduled for enactment this year. The government’s objective includes enhancing the credibility, transparency, and technological friendliness of public financial management by establishing a project bank and amending the procurement act and regulations. July 5, Kathmandu.
The government has set deadlines to complete the enhancement of existing public financial management information systems, including the Inter-Ministerial Budget Information System (LMBIS) and the Local Level Fund Management System (SUTRA), within the current fiscal year. Strengthening public financial management systems and developing an integrated and automated system are key components outlined in the implementation action plan for the Third National Public Financial Management Reform Strategy (2025–2030) prepared by the Ministry of Finance.
The implementation plan establishes seven strategic pillars: budget reliability, budget execution and reporting, revenue management, intergovernmental fiscal management, debt and financial risk management, asset management and external oversight, as well as transparency and accountability. It defines the priorities for reforms, expected outcomes, and a long-term roadmap for continuous improvements. According to the ministry, this action plan will provide a clear operational roadmap for executing reform activities.
