Nepal maintains progress in Open Budget Survey Index; Scores 52 in latest OBS 2025
Press Release
Nepal has demonstrated steady performance in fiscal transparency, achieving a score (52) out of 100 in the International Budget Partnership’s (IBP) Open Budget Survey (OBS) 2025 published on Wednesday. This score reflects a slight improvement from the 50 points recorded in 2023, reflecting a sustained effort to provide the public with access to central government budget information.
"Government budget decisions—what taxes to levy, what services to provide, and how much debt to take on—have important consequences for all people in society," the biennial survey report notes, emphasizing that meaningful public engagement ensures public money is spent on public interests.
The OBS 2025 survey tells snapshot of Nepal’s current practices related to budget disclosure, opportunities for public engagement in the budget cycle, and effective checks and balances.
Nepal's OBS score: Leads South Asian neighbours With a transparency score of 52, Nepal leads its South Asian neighbors, surpassing Pakistan (45), India (44), Sri Lanka (43), Bangladesh (37), and Afghanistan (0). However, despite this regional leadership, Nepal remains below the score of 61, which is considered the minimum threshold for "sufficient" transparency to support the informed public debate.
Nepal’s score in public participation remains low at 28, reflecting "few" formal opportunities for the public to engage in the budget process. While the Supreme Audit Institution (SAI) provides adequate opportunities for engagement (67), the executive and legislature lag significantly behind.
The composite oversight score indicates "limited" effectiveness at 52. While Audit Oversight is considered "adequate" with a score of 78, Legislative Oversight is ranked as "weak" at 39, remaining a persistent challenge across survey cycles.
Despite continuous advocacy efforts from CSOs and media, Nepal has not produced and made publicly available the pre-budget statement (PBS) and Citizen Budget, Freedom Forum's Executive Chief and budget researcher Taranath Dahal commented. “The recommendations based on the survey data are highly relevant and crucial for the overall improvement of the financial sector. Relevant authorities must pay serious attention to their implementation”, he noted.
Recommended measures for further reforms The survey has outlined various recommendations to improve Nepal’s transparency score. To reach a "sufficient" transparency level and restore public trust, the OBS 2025 recommends that Nepal should timely publish the Pre-Budget Statement and Citizens Budget online. The Executive’s Budget Proposal should include more comprehensive multi-year projections and a glossary of terms to improve budget literacy. Furthermore, the Year-End Report must disclose fiscal risks and performance outcomes, while the Audit Report should strengthen disclosures regarding extra-budgetary funds and the executive's progress in addressing past recommendations.
The survey also recommends that Nepal strengthen public participation by sustaining provincial consultations and informing citizens how their inputs influence policy. The report emphasizes that effectively implementing the Third National PFM Reform Strategy with a focus on inclusivity will be vital to increasing legislative oversight and accountability as well as engaging underrepresented communities, and allowing public testimony during parliamentary hearings on budget proposals and audit reports.
To bolster oversight, the report recommends that Nepal’s Federal Parliament require the Executive’s Budget Proposal be submitted at least two months before the budget year starts. Legislative committees should proactively monitor debt, examine budget implementation, and publish analysis reports online. Additionally, the executive should consult the legislature before shifting funds, and committees such as the Public Accounts Committee (PAC) must ensure timely follow-up on audit recommendations.
The Open Budget Survey is the world’s only independent, comparative, and fact-based research instrument to assess public access to central government budget information. The 10th edition of the OBS covers 82 countries.
The Nepal portion of the survey was completed by independent experts Taranath Dahal and Subash Dahal of Freedom Forum.
For more information, visit www.internationalbudget.org/open-budget-survey or www.freedomforum.org.np.
Media Contact: Freedom Forum Email: info@freedomforum.org.np
