It is that time of the year again. The last-minute construction spree is underway to make up for chronic underspending of capital expenditure, right ahead of the new budget to be presented in Parliament on 29 May. The paradox is that while the government faces a severe cash crunch due to falling revenue, it spent only one-third of the development budget in the last 10 months of the fiscal year.&nbsp; The new parties in Parliament like the RSP have been trying to shake things up and urge multi-partisan consultations before the budget, but given the obsolete structure and leadership of the parties, not much is expected to change. But there is a strong argument for tax reform since the government faces a major challenge in balancing revenue with expenditure. The previous government’s ban on luxury items to augment depleting foreign reserves post-pandemic and increased bank interest led to the decline of real estate transactions resulting directly in a drop in revenue. But what makes matters worse is that the government has been profligate in spending beyond its means. Salaries, allowances, administrative expenses, grants and loans have all gone up. The government collected Rs756 billion in revenue in the last 10 months against the target of Rs1.4 trillion whereas its expenditure has exceeded Rs1.04 trillion.&nbsp; Read also: <a href="https://www.nepalitimes.com/editorial/institutionalised-inequality">Institutionalised inequality</a>, Editorial Taxation is the primary source of income for any government. Contrary to what the wealthiest Nepalis think, the government is not run with their tax money but by what ordinary citizens pay in taxes. &nbsp;While tax evasion concentrates the wealth within the already privileged, the tax the poor pay is not proportional to their earnings. &nbsp; Nepal’s liberal economic policy since 1990 was expected to alleviate the income gap with trickle down effect, but the economic disparity in society is more stark than ever. A 2020 report Equality for Prosperity showed that while the wealthiest 20% of Nepalis own 56.2% of wealth, the poor 20% have only 4.1%. This economic gap is likely to have widened with the current crisis.&nbsp; This income gap is not just in Nepal. Worldwide, a skewed tax system is blamed for rising inequality. A new Oxfam report points out that two-thirds of the wealth that has increased globally after the Covid-19 pandemic is in the hands of the richest 1%. It recommends tax reforms based on wealth accumulation. “Because the tax system is not progressive in Nepal, wealth is piling up in the hands of the rich, while the income of the poor is not increasing,” explains economist Dilliraj Khanal. “We don't have a system of taxing the rich because of policy weakness and dominance of middlemen.”&nbsp; Read also: <a href="https://www.nepalitimes.com/opinion/nepals-care-economy">Nepal's care economy</a>, Bina Pradhan  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230526050528_6fe0c49de563e6fb210c25501e835186d93ecd57b2f63f8ff8154dca49daeee7.png" data-media-id="editor_2" data-image-id="20230526050528_6fe0c49de563e6fb210c25501e835186d93ecd57b2f63f8ff8154dca49daeee7" data-rendition-name="original" width="741" height="541" loading="lazy" alt="Rich-poor gap graph"> </figure>  Who pays taxes? Two-thirds of the government's annual revenue is collected not from corporations and industry, but from various taxes and revenue paid by the general public. The share of tax on corporate profit is in fact very small.&nbsp; In fiscal year 2021/22, the government collected a total of Rs989.62 billion in revenue. Of this, the income tax paid by businesses from the profits earned through private companies is only 5%. So while income tax did bring in Rs229 billion which is 24% of total revenue collected, this amount is largely from the income tax paid by ordinary citizens on their personal income. The tax paid from the profits of private companies is only Rs47.5 billion. When adding public limited companies (issued shares to the general public) and other types of companies, corporate income tax comes to only about Rs114 billion,which is just 11% of the government’s annual revenue.&nbsp; The government collected Rs314 billion from VAT last year, and this made up about one-third of total government revenue. Similarly, Rs241 billion was collected as customs duty and Rs155 billion as excise. “Society with unequal income and wealth, but equal taxes, burdens the poor and favours the rich, it is a regressive tax system that makes it difficult for the poor to survive,” says Khanal. For example, VAT is the same 13% for all Nepalis – rich and poor. &nbsp; “In essence, five-star hotels in Kathmandu and the poor are both taxed equally for LPG fuel,” he adds. “From a social justice standpoint, taxes must be based on income.” Read also: <a href="https://www.nepalitimes.com/here-now/ground-reality-of-landlessness-in-nepal/" target="_blank">Ground reality of landlessness in Nepal</a>, Rabi Giri Taxation expert Roop Khadka disagrees, saying it is impractical to have a different VAT rate for rich and poor, and even if it was introduced it would be impossible to enforce. Instead, Khadka favours revoking VAT exemption on goods and services consumed by the upper classes, which are worth nearly Rs100 billion per year. Tax evasion by the rich is another problem that needs to be tightened, and collusion between business and politicians means that the government itself abets tax evasion. Real estate speculation has helped select groups in Nepal to become immensely rich immediately, but the government collects a bare minimum in tax from profits made in land transactions. &nbsp; A real estate sale within five years is required to pay 7% of its profit. If the transition happens within 10 years, only 5% of the profit is taxed. This means most of the astronomical profits made in real estate sales in the past years have gone into the pockets of brokers and large landowners. On the other hand, the 60th report of the Auditor General's Office says many evade tax by showing less than the actual value of the property. The VAT bill scandal 10 years ago also revealed the widespread tax evasion by the commercial sector. The politics of patronage means that businesses are now colluding with politicians and bureaucrats to loot the treasury. The Tax Settlement Commission decided to collect Rs9.54 billion from businesses that have not paid tax for a long time, but the Auditor General's Office later revealed that the decision was made in cahoots with the businesses themselves who actually needed to pay Rs30.52 billion. The most egregious and blatant wrongdoing was by former Finance Minister Janardhan Sharma who was making backroom deals with select business groups importing steel rods and electric vehicles so their products got customised tax breaks in the budget last year. The deal cost Sharma his ministership but the unholy nexus between politicians and business continues with impunity.&nbsp; Read also: <a href="https://www.nepalitimes.com/here-now/state-sponsored-economic-crisis-ikcxxmnp">State-sponsored economic crisis</a>, Ramesh Kumar  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20230526050528_60a9385914649170d0496b8864bcb751477820b43554c68bec524f6e2412d39b.jpg" data-media-id="editor_5" data-image-id="20230526050528_60a9385914649170d0496b8864bcb751477820b43554c68bec524f6e2412d39b" data-rendition-name="original" width="6124" height="4082" loading="lazy" alt="Kathmandu labourer NT"> <figcaption>Photo: SUMAN NEPALI</figcaption> </figure>  Alternative to the wealth tax In this state, the only sector keeping Nepal’s economy afloat is the estimated $9 billion Nepalis abroad send home every year. Still, Nepal’s debt has reached 43% of GDP, a sharp rise from 28% a decade ago. This will have a direct impact on the tax system. Sooner or later, the government will raise taxes. But for whom?&nbsp; If the status quo continues, and the poor are subjected to more taxes the income gap will widen further, inviting social unrest. Taxation relative to the size of the economy is about 22% in Nepal, one of the highest in South Asia. But for every Rs100 the government receives as revenue, only Rs23 is collected through income tax. The rest is made up of common citizens paying for the consumption of goods and services.&nbsp; All over the world, different levels of income are distinguished and income tax exemption is given to the lowest which is known as a basic exemption. Welfare states also have a weighted system of taxes of the richest that ensures socio-economic equality. But even though there is a flat tax on salary and allowances, windfall profits including from real estate transactions are not taxed properly, leading to a consolidation of wealth among certain groups. Read also: <a href="https://www.nepalitimes.com/banner/nepals-great-income-divide">Nepal's great income divide</a> Experts have proposed wealth-based taxation to reduce the disparity between rich and poor. Economist Keshab Acharya says that the government should levy an inheritance tax on ancestral property to children as is done in the US, Japan and Europe. This encourages entrepreneurship and inspires the new generation to find creative ways to earn money. But the historical distribution of land in Nepal was largely unfair where families close to the ruling class were granted ownership exempt from tax. These assets have been handed down through generations and ownership of a large part of it is still limited to certain families.&nbsp; Historian Mahesh Chandra Regmi in his book Land Ownership in Nepal states that before 1951, more than one-third of the total arable land had been handed down intergenerationally in that manner. An inheritance tax will also reduce corruption because the mentality that wealth should be passed on to children will be weakened if such a tax is implemented. Meanwhile, land prices in Kathmandu skyrocketed thanks to the government. Since the state has spent on infrastructure that led to the rise in value of property, it should get a share of the profits “The government should get the benefit of increased property valuation in the form of taxes which will increase the spending purse for the welfare of the poor,” explains Khanal. Read also: <a href="https://www.nepalitimes.com/?p=21822&amp;preview=true" target="_blank">Some are more equal than others</a>, Anil Chitrakar

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Nepal’s tax system widens rich-poor gap

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114121112/637222e29c7e80680e0c031ejpeg.jpg" alt="" width="1086" height="724"/><figcaption>Charikot Hospital. Photo: NYAYA HEALTH NEPAL</figcaption></figure>Nepal’s medical industrial complex has modernised healthcare in the country, but it has also pushed treatment out of reach of most citizens.Collusion between politicians and medical magnates has made it so expensive to become a doctor that it has set off a chain reaction to make hospital treatment unaffordable.Meanwhile, government hospitals are <a href="https://www.nepalitimes.com/here-now/at-the-covid-19-frontlines-in-rural-nepal/">under-funded, under-staffed and under-motivated</a>. Most medical personnel in district hospitals and health posts moonlight in private clinics, and patient treatment is substandard.Desperate families have to sell property, jewelry and other assets <a href="https://www.nepalitimes.com/banner/in-a-healthy-state/">to afford private treatment</a>, pushing even some middle-class families below the poverty line.Read more: <a href="https://www.nepalitimes.com/banner/in-a-healthy-state/">In a healthy state</a>, Nepali TimesBut there are notable examples of government hospitals that are running well because of various models of partnership with non-profits, foundations and charities. They prove that affordable high quality healthcare is possible, and those hospitals need not be so expensive to run.There is <a href="https://archive.nepalitimes.com/news.php?id=18362#.YrQjS-xByrc">Dhulikhel Hospital</a> which has a tiny registration fee, treatment is low cost, an insurance scheme pays for most treatment, and patients are charged according to their capacity to pay. Despite being a government hospital, Dhulikhel has upheld a consistently high standard of care and treatment.United Mission to Nepal has run a hospital in Tansen for over 60 years, a community hospital in Okhaldhunga, and was till recently managing Patan Hospital, providing high quality care at low cost to patients.Other public-private partnership institutions that could be models to be replicated across Nepal include:<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114121112/637222e59c7e80680e0c031fjpeg.jpg" alt="" width="1500" height="1000"><figcaption> </figcaption></figure><h3>Bayalpata Hospital</h3>After <a href="https://www.nepalitimes.com/opinion/is-free-health-care-possible-in-nepal/">Bayalpata Hospital</a> was established in Achham 20 years ago, for many years it did not have a single doctor. Treatment was so poor that even emergency cases had to be taken on a grueling 12 hour drive down to Dhangadi.In those days HIV tagged along with the migrant workers returning from India, and there was a full-blown AIDS and TB epidemic in Achham and other district in Far Western Nepal. The mortality rate, already very high among women and children, soared.In 2009, Nepali and American medical students inspired by the community health model of <a href="https://www.nepalitimes.com/latest/paul-farmer-on-my-mind/">Paul Farmer</a> set up Nyaya Health Nepal (formerly Possible) taking over  Bayalpata under a public-private partnership with the government.Since then, Bayalpata Hospital has upgraded its facilities (left) and <a href="https://www.nepalitimes.com/banner/state-of-the-art-rural-hospital/">treated nearly 1.5 million patients for free</a>, some of them for complicated caesarian and orthopedic surgeries.Read also: <a href="https://www.nepalitimes.com/opinion/is-free-health-care-possible-in-nepal/">Is free health care possible in Nepal?</a> S P KalauneeUp to 100,000 patients from Achham and surrounding districts come to Bayalpata because they get free treatment there, and many families have saved themselves from sinking into poverty.Bayalpata also runs a network of community health centres with an Electronic Health Record (EHR) system that digitally keeps track of all patients in the catchment area. The presence of just this one hospital has improved the health parameters of surrounding districts, bringing down the maternal and child mortality rates. Achham once had the highest maternal mortality rate in Nepal, today institutional deliveries make up 90% of total deliveries, and very few women die at childbirth.“We have a simple objective: to show that providing free and high quality treatment to the most underserved area of the country is possible at a very low cost,” explains Srijana Devkota of Nyaya Health Nepal.Once <a href="https://archive.nepalitimes.com/article/nation/Nation-Crowdfund-globally-act-locally,490">fully funded by international foundations</a> to run hospitals in Bayalpata and Charikot, NHN now provides free medical treatment in Achham for just Rs200 million a year, of which half now comes from the Sudurpaschim Province and local municipality.+977 - 4100517<a href="https://www.nyayahealthnepal.org/">https://www.nyayahealthnepal.org/</a><figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114121112/637222e89c7e80680e0c0320jpeg.jpg" alt="" width="750" height="401"><figcaption> </figcaption></figure><h3>Spinal Injury Rehabilitation Centre</h3>The <a href="https://www.facebook.com/SpinalNepal/">Spinal Injury Rehabilitation Centre</a> (SIRC) in Banepa is a public-private partnership  providing treatment and rehabilitation to people with spinal injuries. It was started by journalist and civil rights activist Kanak Mani Dixit after his miraculous survival and recovery in a trekking accident in 2000 along the Annapurna Circuit that damaged his spinal cord.SIRC now <a href="https://www.nepalitimes.com/here-now/injured-use-internet-to-reach-physiotherapists/">helps rehabilitate up to 100 spinally injured patients</a> a year, and the numbers are going up every year due to injuries sustained in highway accidents and falls from trees and cliffs. The facility was located in Banepa because of its proximity to highways and nearby trauma centres. The hospital has also been providing community treatment and tele-rehabilitation services for follow-ups.Read also: <a href="https://www.nepalitimes.com/editorial/poor-health-makes-nepalis-poorer/">POOR HEALTH MAKES NEPALIS POORER</a>, EditorialThe hospital has medical officers, urologists, physiotherapists, occupational therapists, nursing care, prosthetics, orthotics, psychologists and consultants. Those who cannot afford to pay are still treated for free, others are charged the same rate as Bir Hospital.“Because patients often have to stay for more than five months, it may be difficult for them to afford the cost, so we charge them according to their capacity to pay,” says SIRC’s Raju Dhakal.SIRC’s annual running cost is Rs50 million, of which most comes from grants by non-profits and other fund-raising activities. The government also chips in with a budget for the physical construction and equipment as well as occasional allocations to cover budget shortfalls.infosirc@wlink.com.np, spinalnepal@gmail.com<a href="https://www.sirc.org.np/">https://www.sirc.org.np/</a><h3>Charikot Primary Health Centre</h3>The 2015 earthquake damaged <a href="https://www.nepalitimes.com/latest/unique-hospital-handover-in-dolakha/">Charikot Primary Health Centre</a> along with 98% of the medical facilities in Dolakha district. But the disaster was a blessing in disguise for the Charikot centre. It was rebuilt and upgraded to a full-scale 50-bed hospital and managed first by Médecins Sans Frontières and then by the non-profit Nyaya Health Nepal (NHN). Residents of Dolakha did not have to make expensive journeys to Kathmandu because medical treatment was available for free at Charikot.Read also: <a href="https://www.nepalitimes.com/opinion/dangers-of-privatising-health-insurance-in-nepal/">Dangers of privatising health insurance in Nepal</a>, Gaj B Gurung and Sushil KoiralaIn 2020, NHN handed over management of the hospital to Bagmati Province and Bhimeshwor Municipality which now run the facility with low cost treatment for up to 300 patients a day. The Charikot experiment has been hailed as a model for successful transfer by a private non-profit to the local government, and it has been running well despite the presence of two private hospitals in Charikot.“It has been a seamless handover from Nyaya Health to the government, and the level of care and treatment is the same,” says chief physician Binod Dangal. “We perform caesarean sections, orthopedics, telemedicine, free check-ups for the elderly, children and pregnant women, mental health counselling, and chronic illness monitoring.”+977 49 421125<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114121112/637222ea9c7e80680e0c0321jpeg.jpg" alt="" width="1080" height="608"><figcaption> </figcaption></figure><h3>Sagarmatha Chaudhary Eye Hospital</h3>For the past 30 years, the <a href="http://archive.nepalitimes.com/news.php?id=10071#.YrQlROxByrc">Sagarmatha Chaudhary Eye Hospital</a> in Lahan of Siraha district has been providing the cheapest cataract surgery in the world for just Rs1,200 per operation.Thirty years ago when the hospital started, it had only 12 beds. It now treats 470,000 people every year with patients coming in from as far away as southern India and Bangladesh, and they pay the same amount as Nepalis. Just in the last three years, the eye hospital has treated 321,000 foreign nationals.“It is possible to provide the services at an affordable cost because we are a non-profit, and have an economy of scale,” explains Abhishek Roshan of Sagarmatha Chaudhary Eye Hospital.Read also: <a href="https://archive.nepalitimes.com/article/editorial/health-tip-editorial,4032">Health tip</a>, EditorialThe hospital has <a href="http://archive.nepalitimes.com/news.php?id=10071#.YrQlROxByrc">also set up 15 eye care centres throughout the district, and takes treatment directly to the people</a> so they do not have to make the journey to Lahan. It has a separate department for paediatric services, care for newborn babies with vision problems. In 2021 alone, it performed 1,170 eye surgeries on children.Apart from providing treatment of retina, cornea, glaucoma, oculoplasty, the hospital also serves as an international research centre, collaborating with institutions like The London School of Hygiene and Tropical Medicine.The hospital subsidises its eye treatment for patients with revenue from its agribusiness ventures. A part of the hospital’s land is dedicated to fish farming, and an orchard for litchi and mangoes, as well as a bamboo grove.“Income from those ventures help us keep the cost of treatment down,” says Roshan. The hospital is also supported by Christian Blind Mission (CBM), the European Commission and Arvis.+977-33- 560080https://www.erec-p.org/sagarmathaRead more: <a href="https://archive.nepalitimes.com/article/nation/national-health-insurance-not-as-easy,4028">A national health insurance scheme is not as easy as it looks</a>, Sonia Awale

Taking wealth out of health

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101152/636a26e49c7e80680e043a3ejpeg.jpg" alt="" width="800" height="1178"/><figcaption>Diwakar Chettri</figcaption></figure>Whatever the political ambitions of the Maoist leaders, their justification for taking up arms was the inequality historically embedded in Nepali society. The rebels lit the spark on terrain that was tinder dry with disparities. Nepal would have gone up in flames sooner or later, the Maoists just had their timing right.The tragedy, of course, is that in an allegory of Animal Farm 13 years after the war, the Maoist leaders people elected to government forgot what they fought for, and Nepal’s income and wealth gap have grown even wider. As our review of a recent report shows, Nepal’s poor are <a href="https://archive.nepalitimes.com/article/editorial/Nepal-%20Multidimensional-Poverty-Index,4115" target="_blank" rel="noopener">trapped in poverty</a> while the few rich have prospered.The report by HAMI, South Asian Alliance for Poverty Eradication and Oxfam paints an alarming picture of <a href="http://archive.nepalitimes.com/news.php?id=17298" target="_blank" rel="noopener">deprivation</a>  and disparity in Nepal: the average income of the richest 10% of Nepalis is more than three times that of the poorest 40%. Worse, the richest 10% own 26 times the wealth of the poorest 10%.Read also:<a style="background-color: #ffffff; outline: 0px; font-weight: bold; letter-spacing: 0.01em; font-size: 15px;" href="https://www.nepalitimes.com/?p=21837&amp;preview=true" target="_blank" rel="noopener">Nepal's great income divide</a>, Ramesh Kumar<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=21822&amp;preview=true" target="_blank" rel="noopener">Some are more equal than others</a>, Anil Chitrakar<a href="https://www.nepalitimes.com/opinion/gadfly-opinion/removing-poverty-with-jobs/" target="_blank" rel="noopener">Removing poverty with jobs</a>, David Seddon<a style="background-color: #ffffff; outline: 0px; font-weight: bold; letter-spacing: 0.01em; font-size: 15px;" href="https://www.nepalitimes.com/banner/its-a-rich-mans-world/" target="_blank" rel="noopener">It's a rich man's world</a>, Ramesh KumarEconomic inequality is most evident in agriculture in which 66% of Nepalis still depend. The wealthiest 7% of households own 31% of the agricultural land, and many landless are tenant farmers at the mercy of landowners. Social discrimination multiplies the misery: 81% women are landless, as are 44% of Dalits in the Tarai.Nepal’s <a href="http://archive.nepalitimes.com/news.php?id=15026#.XGzGkOQza70" target="_blank" rel="noopener">wealthiest man</a> has a net worth of $1.6 billion and is the 1,561 richest in the Forbes list. His wealth grew by $200 million last year. A history of feudalism, a rent-seeking state and neoliberal economic policies have concentrated Nepal’s wealth in the hands of a dominant elite which has made policies and laws to perpetuate its hold on it. Rulers and hangers-on have deliberately kept the poor out of reach of new opportunities, depriving them of a chance of a better life.Such disparity also gives the movers and shakers an unfair advantage in a democracy because they can bend the system to keep getting elected, which then deprive the underserved even more. Politicians, bureaucrats and businesses can carry on with <a style="background-color: #ffffff; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/editorial/red-rice/" target="_blank" rel="noopener">business-as-usual</a> with no accountability, full impunity and no fear of retribution from a <a style="background-color: #ffffff; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/editorial/bulldozing-democracy-2/" target="_blank" rel="noopener">rigged system</a>.The government’s failure to deliver on basic services like health and education have driven the private sector to fill the gap. But consequent over-commericalisation and lack of regulation have put quality schooling and medical care out of reach of the poor. The government’s reaction has been to back a populist call for nationalisation to cover up its own delivery failure.Inequality is taking its toll on the physical and mental development of children. <a style="background-color: #ffffff; letter-spacing: 0.01em;" href="http://archive.nepalitimes.com/article/nation/the-face-of-hunger-debt-malnutrition,3604" target="_blank" rel="noopener">Malnutrition</a> begins at a very young age: 36% of Nepali children under five are stunted, 27% are underweight, and 10% suffer from wasting due to lack of adequate food. There is no greater proof of chronic governance dysfunction than this: the apathy and failure of the state to protect its most vulnerable.No society or nation can have totally equal income or wealth distribution. But there must be a certain equilibrium so that all citizens can attain a basic quality of life and earn a standard, minimum income.But inequality is so bad that the 8 million Nepalis who live in poverty have shorter lifespans. A poor Nepali child is three times more likely to die before age 5 than a rich child. The poor and excluded receive unequal care at government hospitals.What is most tragic is that there is minimal recognition or commitment from successive governments to redress this injustice. Nepal ranks 138, which is nearly at the bottom of a list of 157 countries, for its Commitment to Reducing Inequality. Rampant <a href="http://archive.nepalitimes.com/article/from-nepali-press/poor-of-kathmandu,2153" target="_blank" rel="noopener">poverty and extreme inequality</a> build frustration among suffering citizens, increasing the chances of social instability, and possibly renewed conflict. After a revolution to liberate the poor from poverty ended up killing 17,000 of Nepal’s poorest people, the gap between the rich and poor has actually widened.The way countries try to compensate for the inequality inherent in free market capitalism is through progressive land reform and taxation, by spending on a social safety net, and through  government investment in affordable, quality health care and education. There must be minimum wages for even those working in the informal sector, because that is where majority of Nepalis are engaged. All this would lay the foundation for a more equitable society, where the poor may not be immediately guaranteed greater income but all citizens would have a level playing field.We have seen the current government make tentative moves to address some of these issues, but they are too little and too half-hearted. The chasm between the rich and poor is so wide that it will take more than the hollow populism of the government's ‘Prosperous Nepal and Happy Nepalis’ slogan for prosperity and happiness in our lifetime.10 Years ago this weekThis passage from the Editorial in Nepali Times #439 of 19-26 Feburary, 2009 about how the still Royal Nepal Army was trying to reassert itself warns of danger to the civilian chain of command. Excerpt:The Nepal Army's 'recommendations' to the CA Committee on Protection of the National Interest has raised hackles. While it is the fundamental right of every citizen to respond to the CA's call for suggestions, an instrument of state is expected to abide by operational norms of proper procedure. The NA brass has clearly overstepped its limits by bypassing the executive to present its case directly before the legislature. Under normal circumstances, an organ of state has to access parliament through the concerned ministry. But even more alarming is the tone of the content. A civilian chain of command means the army shouldn't have a political position of its own other than that of the government of the day.

Mind the Gap

Sometimes, we need to take a step back to realise what a tectonic movement Nepali politics witnessed this month.
In a region and world ruled by elected authoritarians, Nepalis &nbsp;went to the ballot box freely to express a collective will for change.
These faces in this group photo of the RSP’s 180 freshly-minted MPs at the ballroom of the Royal Tulip Hotel on Wednesday is symbolic of what Nepal has come through.&nbsp;
The ship of state righted itself after the September Storm, installing an interim government that held an election within six months in which voters banished obsolete politicians and their parties into oblivion.
Nepalis, fed up with the inept kakistocracy of the past three decades, took the country into a post-ideological phase — replacing Marxists, Maoists and monarchists &nbsp;with a belief in a new governing culture that rewards delivery and accountability. And they have trusted the RSP to carry it through.
Nepal’s history has never been linear, it jerks ahead in lurches. The polity also tends to take one step forward and two steps back, so the public’s great expectations is tempered by a sense of cautious optimism and guarded pessimism.
This could be the great leap forward that Nepalis have waited for and deserve, but it could also be a Gramscian interregnum in which the old is dead and the new is not yet born. We will have to wait to see whether this transitional period will also see ‘morbid symptoms’.
As disruptor-in-chief, it was the Balendra Shah ‘wave’ or ‘craze’ that propelled the RSP to power. The former Kathmandu mayor needed a party platform, and the RSP’s tainted leader Rabi Lamichhane required a booster. Nepal's voters were looking for a saviour.
Personality-wise Shah and Lamichhane are poles apart: one is Type B and the other Type A. One is enigmatic, the other phlegmatic. But yin and yang do also tend to complement each other.&nbsp;
Kathmandu’s chattering class is already making self-fulfilling prophecies about the two falling out, and are fishing for hints that they already have. Shah’s absence from the RSP’s orientation this week was taken as a clue.&nbsp;
Closing the two-day tutorial on Wednesday, Lamichhane delivered a fiery 30-minute speech that laid out the RSP’s main agenda: to function differently from the old parties, serve the people, avoid middlemen, become true lawmakers without taking the law into their own hands.&nbsp;
“The old political parties contributed to history, we will build the future with a new political contract with citizens,” he said, trying to rise over past controversies and his abrasive rhetoric to sound statesmanlike.&nbsp;
GIVE AND TAKE
Lamichhane is said to be in touch with the reclusive Shah to announce a compact cabinet next week. Its composition will be an indication of how much give-and-take there was, and whether the criteria for selecting ministers is competence or loyalty.
Will RSP ministers behave like rulers or service providers? The new government will dive right into the economic fallout of the West Asia war with soaring fuel &nbsp;prices, inflation and uncertainty about remittance inflows.
On Thursday, Gagan Thapa resigned as NC chair, taking moral responsibility for the party’s election loss. The UML’s unrepentant K P Oli does not share the same sentiment about who is responsible for his own party’s historic downfall.&nbsp;
NCP chair Pushpa Kamal Dahal, who was luckier than his cross-party cohort, is now a comparative relic in a Parliament largely comprised of freshmen and sophomore lawmakers.
But the NC, UML and NCP still control provincial and most municipal governments. The old parties could try to make things difficult for the RSP at the centre, but it is also an opportunity for them to clean up their act ahead of local elections next year.&nbsp;
Another test for the RSP will be dealing with a heavily-politicised klepto-bureaucracy which has to frontend its policy decisions. &nbsp;

People’s power

Nepal’s new political wave has been described in many ways: a generational shift, a technocratic shift, a shift in ideas, and a shift in political behaviour. Young leaders now sit in Parliament, many with international education and policy experience.
But amid this excitement, a quieter truth risks getting lost: this political transformation is also the ascent of people who, until recently, were the grassroots themselves.
For the first time, many of the people now sitting in government are not distant elites. They are people I have marched with, argued with, worked with, and been inspired by for more than a decade.
They are people who once stood ankle‑deep in floodwaters, not in front of press conferences. As optimism rises around the new government, we must not forget that the climate crisis has not slowed down. 
The monsoon is at our doorstep again. And if the disasters from previous years taught us anything, it is that climate impacts do not wait for political transitions. And our mountains and rivers do not care who sits in Singha Darbar.
What is different this time is who holds power.
During the <a href="https://nepalitimes.com/opinion/flood-of-despair" target="_blank">September 2024 floods in Kathmandu</a>, the first responders were not the state or development machinery. It was ordinary young people. A loosely formed WhatsApp network coordinated everything from dispatching mountain bikers to landslide‑stranded areas, to pooling relief supplies, to delivering materials to army bases for airlifting. These were citizens acting out of necessity, not mandate.
Many from that very network are now part of the government. As I have argued before in Nepali Times, top‑down climate responses in Nepal have always been too little, too late, and too disconnected from lived experience. The only proven path is bottom‑up, community-led adaptation where those who face the risks daily shape the solutions. 
International research backs this: community-based adaptation has been central to success stories from Bangladesh’s cyclone shelters to Vietnam’s mangrove restoration to the Philippines’ barangay disaster committees. The world has repeatedly learned that resilience grows from the ground up, not the top down.
RARE MOMENT
Nepal now has a rare political moment where people with lived experience of crisis sit in positions of authority. The real test is whether this lived experience becomes policy and immediate action.
The expectation should not be that these new leaders deliver because of their degrees. It should be because they remember where they come from and use their privilege to strengthen and fund local institutions, networks and people who kept this country functioning long before governments did.
The monsoon that starts in June will test the government’s commitment to governing from the bottom up. Will these new leaders govern the way they once volunteered — listening first, acting fast, improvising where needed, and involving those closest to the danger? Or will the weight of the state push them back toward the familiar comfort of top‑down plans and consultant reports?
The challenges are complex. <a href="https://nepalitimes.com/opinion/comment/a-pre-monsoon-deja-vu" target="_blank">Climate change is driving displacement</a>, deepening poverty, and exacerbating gendered vulnerabilities. Climate adaptation, therefore, needs cross-sectoral solutions that understand how these issues intersect.
Long-term transformation is essential. Our major cities like Kathmandu desperately need a future where rivers are protected instead of mined, where an urban forest cools our heat‑trapping city, and where mobility focuses on sustainability, not just shiny EVs. Our mountain villages and terai lowlands deserve a community resilient to climate impacts, with livelihoods protected.
These require years of work. But immediate, life-saving measures cannot wait.
Will the government finally rein in the sand mining and quarrying upstream of the Rosi and Nakkhu Khola? Will someone sit down with the communities on the riverbanks and listen to the early warning signs they’ve learned through pain? Will climate adaptation be prioritised amidst political noise and competing crises?
Or will we find ourselves, yet again, mourning damage that could have been prevented? I have been inspired by many of the individuals now in government — they questioned old hierarchies, challenged worn‑out norms, and believed that things could be done differently. 
But while the faces in Parliament have changed, the bureaucracy has not. Development organisations and civil society groups have not. And those systems are slow: too slow for the speed at which our climate is changing.
So something has to give. And that shift must begin with remembering where this political movement came from: the grassroots. Those now in power must not forget the urgency they once carried in their bones. They cannot forget the feeling of wading into murky floodwater, holding a bag of rice over their heads. 
And it is our responsibility — mine <a href="https://nepalitimes.com/news/turning-green-policies-into-greenbacks" target="_blank">as a writer</a>, yours as a reader, and ours as citizens — to remind them. The real spark for <a href="https://nepalitimes.com/opinion/measuring-climate-impact-on-culture-and-heritage" target="_blank">climate action</a> comes from personal stories of loss, fear, survival, and solidarity. And suddenly, those stories are no longer outside the halls of government. They are inside.
The question is no longer whether our leaders understand the stakes. They do. They lived it. The real question, as the skies grow heavier again, is this: What will we do with this moment?
<a href="https://nepalitimes.com/opinion/comment/a-pre-monsoon-deja-vu">Rastra Raj Bhandari</a> is a co-founder and fellow at the Himalayan Water Project, where he leads the research on climate finance opportunities for the Himalaya. He contributes regularly to Nepali Times on climate change.

Soon, the monsoon

This week, the RSP held a two-day closed orientation camp for its newly elected members of Parliament. The party has also decided to assign parliamentary and Cabinet roles to leaders only after the new MPs are sworn in on 28 March.&nbsp;
This means the new prime minister and his cabinet of 15 ministers are likely to be installed closer to the Nepali New Year, and the expectation is that it will also usher in a new era of governance and politics in Nepal.&nbsp;
Between now and then, there is much speculation regarding who will become new ministers and from which camp—Balendra Shah's or Rabi Lamichanne’s. Meanwhile, the final argument in the petition against the Rabi Lamichanne case revision is set for Thursday, with a verdict expected on the same day.
“In the past, parties did anything to form coalitions and to keep them from splitting ministries and appointing anyone they wanted to, even going against the spirit of the Constitution, but the RSP doesn’t need to partake in any such activities,” says political analyst Indra Adhikari.
Adhikari notes that governance failures in the past was often the result of coalition governments formed through political bargaining that meant the primary party often had to compromise on their agenda.&nbsp;
“But nothing is stopping the party from fulfilling its election manifesto,” she says. “And if they aren’t able to deliver, we know Nepalis are prone to protests, so another revolt is also a possibility.”
Journalist and author Mohan Mainali agrees that the everyday Parliamentary proceedings should go smoothly for new government because of their majority.&nbsp;
But there are questions as to what a near two-thirds majority allows the RSP to achieve in Parliament. Its 182 seats in the Lower House allows the party to enact and amend laws without hurdles and bypass Upper House’s request for Bill revisions. But the RSP has no presence in the National Assembly, and that means that its majority in the Lower House is not enough to amend the Constitution.&nbsp;
“The Constitution poses no obstacles for the RSP to work on improving governance, development and delivery,” says Mainali. &nbsp;“If they do show some performance, it will be easier for them to go into the next election and ask for a two-thirds majority to also amend the constitution,” he adds.
The last coalition government of the UML and Nepali Congress before the GenZ protests had been built upon a primary agreement to make amendments to the Constitution. So, depending on the nature of amendments, the RSP might find some support within the National Assembly at a time when some of the older parties, such as the Nepali Congress, have committed to supporting the new government as well as internal party reforms.
“What we need is a structural overhaul, from our laws and foreign policy to economy and security apparatus, and for this the RSP needs to champion collaboration and consultation for the sake of nation building,” says Indra Adhikari. “So it all comes down to the understanding and judgment of the RSP’s leadership. If they try to go at it alone, it will lead nowhere.”
To be sure, the provincial government could also clean up their act before the next local and provincial elections, which would help the older parties to regain some of their lost footing and rebuild trust.
As it stands, RSP lawmakers will also have to learn to work with each other. Mainali notes that the RSP not being bound by one clear ideology might lead to future problems, including the rumoured animosity between party president Rabi Lamichhane and prime minister-in-waiting Balendra Shah.
“Parties that came before the RSP had an ideology, whether they followed them or not, but the RSP is made of different kinds of people,” says Mainali. “If they are not motivated by a common goal of achieving something tangible in the next five years, it might be difficult for them to stay together.”
Adds Adhikari: “Balendra and Rabi don’t seem to be compatible. Rabi has already failed when it comes to the matters of governance, and Balendra won’t carry that burden. Additionally, there is a struggle between the two in terms of party hierarchy.”
Speaking at the closing of the two-day orientation, from which Balendra Shah was noticably absent, Rabi Lamichanne said that the RSP’s image as intolerant needs to be changed, and that the country is not heading towards totalitarianism but is in the hands of good, new people.
Regardless of the assurance, the general public has seen Balendra Shah and Lamichanne’s disposition in the last several years, and analysts are worried that their personalities and ambition might lead to an environment of increased intolerance.&nbsp;
As it stands in absence of a strong opposition, the responsibility falls on the media and the civil society to be the watchdog and play an effective check and balance role.&nbsp;
“Seeing how Balendra has ignored the media so far and Rabi has made inflammatory remarks in the past, they are probably more intolerant than the likes of Trump and Modi,” says Mainali. He notes that the party does not just have technical human resource and cyber army but a large number of dedicated supporters.&nbsp;
The media must thus continue to build trust by highlighting good work, educating the public on the importance of impartial journalism in democracy and debate any Bill purposed in Parliament, Mainali adds.&nbsp;
Says Adhikari: “The media should praise the government when they do well, motivate them, but it should also point out wrongdoings without fear, and provide recommendations to do better. Otherwise, absolute power corrupts absolutely, which we have seen happen happen in America with Trump and in India with Modi, where extremism has taken over and democracy has been curtailed.”

Balancing act

The sense of sight is front, centre, and everywhere else as hundreds of eyes follow visitors while they move from one painting to the next at Nikhil Bahadur Shakya’s ongoing exhibition at Siddhartha Art Gallery. Shakya has used blank canvases as well as partially-done thangka and paintings as a base for more than 50 works on display. The exhibit takes visitors beyond the physical world into a surreal spiritual realm. Shakya strips the human body down to muscle, tendon, networks of nerves, and skeleton. But all the while, eyes are a constant presence.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026031708034_dddbfedc57433dc528fbf032642abea4ee67e63875091b06a7804cecdc7716cf.jpg" data-media-id="editor_0" data-image-id="2026031708034_dddbfedc57433dc528fbf032642abea4ee67e63875091b06a7804cecdc7716cf" data-rendition-name="original" width="1080" height="720" loading="lazy" alt="Nikhil Bahadur Shakya"> <figcaption>Artist Nikhil Bahadur Shakya with a visitor.</figcaption> </figure>  The central theme is self-reflection and the journey from one’s outward to inward self, and the works offer a glimpse into the artist’s world of mindfulness.&nbsp; Shakya grew up watching his artisan grandfather design jewellery, which he says cultivated in him an interest for art. During the Covid-19 pandemic, confronted by the fragility of life and the stark reality of death, his art took an introspective turn. The paintings have splashes of neon yellow, pink, red, orange, green, and gold, and Shakya combines them with black and white to create the human body, sunflowers, geometrical shapes, and the cosmos — turning these motifs into elements of devotion and spirituality. In Wheel of Life, Shakya adds to an incomplete thangka, contrasting traditional Buddhist devotional imagery with contemporary mosaic art to create a demon holding on to a wheel with a yin and yang symbol.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026031708034_f2a8e10c73aa83a67e5de06a3f0acff9aa35c1cda278b36fed76ed03e71a7014.jpg" data-media-id="editor_1" data-image-id="2026031708034_f2a8e10c73aa83a67e5de06a3f0acff9aa35c1cda278b36fed76ed03e71a7014" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Nikhil Bahadur Shakya"> <figcaption>Wheel of Life (centre)</figcaption> </figure>  “I wanted to reflect the elements of life and the balance of good and bad in this painting,” explains Shakya. “I took a lot of time to complete this particular piece, but it felt as though my vision flowed out of the brush onto the canvas.” The neon colours used means that visitors can see his artwork under blue light as well, giving viewers a chance to look at a single artwork from two different perspectives. His Sunflower series draws from a field of blossoms, and the eyes stare back at visitors in an almost-hypnotic gaze. In An Ancestral Visit, Shakya goes transcendental to depict the connection of living beings to their forebears.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026031708038_0fbe465b3af872d04f699030ba093d97aad182221730aef535dbf7d059fb57cf.jpg" data-media-id="editor_2" data-image-id="2026031708038_0fbe465b3af872d04f699030ba093d97aad182221730aef535dbf7d059fb57cf" data-rendition-name="original" width="1500" height="1431" loading="lazy" alt="sunflower painting"> </figure>  “In my father’s last days, he was unwell and often unable to eat, it left his body very frail,” explains Shakya. “An Ancestral Visit was inspired by a dream in which I saw my father as his former healthy self. That dream made me feel deeply connected to my ancestors.” In another one of his works titled Devotion, a woman prays to a Shivalinga against a background of red-and-white stripes, which was inspired by the tradition of women being at the forefront during religious and spiritual ceremonies.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026031708038_75e30a4fd339257fbc108e3a326f732fd33d25af0428add0d305b8b7824c558c.jpg" data-media-id="editor_3" data-image-id="2026031708038_75e30a4fd339257fbc108e3a326f732fd33d25af0428add0d305b8b7824c558c" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="devotion"> <figcaption>Devotion</figcaption> </figure>  In Sunyata, which shows a skeletal figure meditating as they are surrounded by flames, Shakya captures the chaos of the outside world with peace of the inner self. Shakya was compelled to create Sunyata when he saw a monk, his body thin and face gaunt, meditating peacefully. “Many viewers might find the painting frightening, but when they take it home, I think it will give them strength whenever they feel like they need it,” says Shakya. The exhibit also includes a gigantic painting of Masan Bhairav spread across two canvases, capturing the majesty of the original work housed at Banepa’s Chandeswori Temple. Shakya met the artist who painted it, and asked to reproduce it.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2026031708034_0216eac587827b02982f5addbd67c6f852fd7f9f47b477267ea7430d5f862a9b.jpg" data-media-id="editor_4" data-image-id="2026031708034_0216eac587827b02982f5addbd67c6f852fd7f9f47b477267ea7430d5f862a9b" data-rendition-name="original" width="1500" height="1030" loading="lazy" alt="art review"> </figure>  Geometric figures are another recurring motif on Shakya’s creations, which he says were inspired by mathematics textbooks from his school days. He says, “Art channels the strength of our minds and brings about change in our lives. My paintings reflect the fact that we are all made up of some madness, magic, and love.” Journey to a Visionary Artworld by Nikhil Bahadur Shakya Siddhartha Art Gallery, Baber Mahal Till 6 April 11AM-5PM