Six Former Finance Ministers Back in the Electoral Race, but a Pattern of Budget Disruption Persists

As Nepal heads toward the House of Representatives election scheduled for Falgun 21, a striking feature of the candidate list is the return of six former finance ministers and one former state finance minister to the direct electoral contest. Their re-entry into parliamentary politics comes amid renewed debate over one of Nepal’s chronic governance challenges: the inability of finance ministers to deliver and implement consecutive annual budgets.

More than 3,400 candidates have filed nominations nationwide for 165 first-past-the-post seats, reflecting both political competition and fragmentation. Among them are senior leaders with long experience in economic management, yet their collective record highlights a structural weakness rather than individual failure.

A Repeating Cycle of Budget Discontinuity

Despite their political stature and expertise, none of the contesting former finance ministers managed to present two consecutive annual budgets while remaining in office. Nepal’s frequent government changes, shifting coalitions, and unstable parliamentary arithmetic have repeatedly disrupted fiscal continuity.

Budget formulation has often been handled by one minister, while implementation has fallen to another. As a result, policy ownership, accountability, and long-term fiscal planning have remained weak, even when the same political forces dominate successive governments.

Since 2008, only a handful of finance ministers—mostly serving under special circumstances such as National Assembly membership or interim governments—have succeeded in presenting consecutive budgets. This exception underscores how institutional stability, rather than personal competence, determines fiscal continuity.

Who Is Contesting From Where

Former prime minister Baburam Bhattarai is contesting from Gorkha-2, having previously presented the FY 2008/09 budget during a politically turbulent transition period. His long political journey—from underground activism to mainstream leadership—mirrors Nepal’s broader democratic evolution.

From the left bloc, Barsaman Pun is contesting Rolpa-1. He has held multiple ministerial portfolios and presented both a full budget and an ordinance-based budget, reflecting the stop-gap nature of fiscal governance during unstable periods.

Five-time finance minister Bishnu Prasad Paudel, contesting from Rupandehi-2, has presented several budgets across different governments. Yet even his tenure illustrates the same problem: budget continuity without ministerial continuity.

From the Nepali Congress, Gyanendra Bahadur Karki (Sunsari-4) and Prakash Sharan Mahat (Nuwakot-1) are also in the race. Mahat, who presented the FY 2023/24 budget, entered the finance ministry via proportional representation, again highlighting how electoral mandates and fiscal authority often remain disconnected.

Similarly, Janardan Sharma is contesting from Rukum West, while former state finance minister Udaya Shumsher Rana is seeking election from Lalitpur-1.

What the Pattern Reveals

The recurring inability of finance ministers to oversee both budget design and execution points to a deeper institutional problem. Nepal’s fiscal policy has been shaped more by political survival than by medium-term economic strategy. Each change in government resets priorities, delays projects, and weakens expenditure efficiency.

Even well-designed budgets have suffered during implementation due to leadership changes, policy reversals, and administrative uncertainty. This has affected capital expenditure, public investment credibility, and private-sector confidence.

Election as a Test of Fiscal Stability

As voters assess candidates with strong economic credentials, the election raises a critical question:
Can Nepal’s next parliament ensure political stability long enough for fiscal policy to mature beyond a single budget cycle?

The presence of multiple former finance ministers in the electoral race adds experience to the contest, but experience alone will not resolve the structural instability that has defined Nepal’s public finance for nearly two decades.

Unless electoral outcomes lead to durable governments and clearer parliamentary mandates, Nepal risks repeating the same cycle—new finance ministers, new priorities, and unfinished budgets.