In a significant legislative development, President Ramchandra Paudel has officially authenticated three vital financial bills that were previously passed by both houses of Nepal’s Federal Parliament. This move marks an important step in the nation’s annual budgetary and fiscal planning process, ensuring continuity in public expenditure, resource allocation, and economic governance.

Confirmation from the President’s Office

Shailaja Regmi Bhattarai, spokesperson for the Office of the President at Shital Niwas, confirmed the authentication in a formal statement. She emphasized that President Paudel’s action adhered strictly to the constitutional mandate outlined in Article 113(2) of the Constitution of Nepal. This article grants the Head of State the authority to authenticate bills that have successfully passed through both legislative chambers.

The Three Financial Bills

While the official announcement did not elaborate extensively on the content of each bill, it is understood that the three bills are integral components of Nepal’s financial framework for the upcoming fiscal year. These are:

1. Appropriation Bill – This bill outlines the allocation of the national budget across different ministries, departments, and development projects.

2. Finance Bill – It defines the taxation structure for the fiscal year, including revisions to customs, VAT, income tax, and other duties.

3. Loan and Guarantee Bill – This governs the terms under which the government may take domestic and international loans, as well as the guarantees it may offer.

Constitutional Provision Under Article 113(2)

Article 113(2) of Nepal’s Constitution plays a pivotal role in the law-making process. Once a bill has been passed by both the House of Representatives and the National Assembly, it is sent to the President for final authentication. The article specifies that the President must provide assent within 15 days of receipt, failing which the bill is automatically deemed authenticated after the expiry of the stipulated period.

In this case, President Paudel acted within the constitutional timeframe and endorsed the bills in a timely manner, reaffirming the procedural sanctity and respect for democratic practices in Nepal.

Implications for Governance and Public Finance

The authentication of these bills ensures that the federal government can legally implement its budget plans and fiscal policies for the 2025–26 financial year. This enables various government agencies and ministries to:

• Proceed with planned infrastructure and development projects.

• Continue funding critical sectors such as health, education, and social welfare.

• Manage public debt efficiently through the Loan and Guarantee Bill.

• Enforce updated tax rates and revenue measures as outlined in the Finance Bill.

The authentication also sends a positive signal to international donors and financial institutions about Nepal’s commitment to transparent and accountable financial governance.

Political and Economic Context

The endorsement of the bills comes at a crucial time. Nepal’s economy is navigating multiple challenges including post-pandemic recovery, inflationary pressures, declining remittances, and the need for infrastructure modernization. Timely approval and authentication of financial legislation are essential for stabilizing public finance and stimulating economic growth.

Moreover, the parliamentary debate over the bills had sparked significant discussion on budgetary priorities, revenue mobilization, and the need for fiscal discipline. The President’s authentication now clears the path for implementation, placing the onus on the government to execute plans effectively.

Reaction from Political Circles

Initial reactions from political parties and economists have been generally positive. Lawmakers across party lines acknowledged the importance of swift bill authentication to maintain financial continuity. Some opposition leaders, however, cautioned that mere passage of bills is not enough and stressed the importance of efficient budget execution and corruption-free spending.

Experts also pointed out that successful implementation will require tight coordination among federal, provincial, and local governments—especially in sectors like infrastructure, agriculture, and employment generation.