The Ministry of Economic and Planning was formed by the Nepali government in 1963. (MEP). The MEP also has the duty of managing the nation’s economic issues in addition to developing periodic plans. Even though institutional protocols and mechanisms to mobilise foreign contributions in a coordinated manner were lacking, the MEP was given the duty of negotiating and executing agreements with donors.
The Ministry of Finance (MOF) and the National Planning Commission (NPC) were both founded in 1968 after the MEP was abolished. Since that time, MOF has been in charge of managing all national economic and financial concerns.
The Finance Secretary is the official leader of the Ministry, while the Finance Minister continues to hold the position of authority inside it. The Ministry is further broken down into different departments and divisions for practical purposes.
The Joint Secretaries, Under Secretaries, Section Officers, and other supporting staffs are in charge of the Divisions, which are situated inside the Ministry.
Administrative Division Legal and Judgment Execution Division Budget and Program Division Financial Sector Management and Corporation Coordination Division Revenue Management Division Economic Policy Analysis Division Planning, Monitoring and Evaluation Division.
The MOF is the primary institution of the Nepalese government and is in responsibility of upholding the nation’s macroeconomic and microeconomic stability. The Ministry’s primary responsibilities also include more sensible resource allocation, better management of public spending, increased internal and external resource mobilisation, improved public investment performance, strengthened productivity of public enterprises, open and uncomplicated foreign exchange policies and regulations, and prudent fiscal and monetary policies.
The Ministry of Finance (Nepali), which serves as the head of the government of Nepal, is in responsibility of upholding the nation’s macroeconomic and microeconomic stability. Bishnu Prasad Paudel, who is presently serves as the finance minister of Nepal.
Budget analysis for the state. Work on coordination for States Market Guarantees and Borrowings coordination with RBI in relation to meetings of the Finance Secretaries and RBI Committees. issuing a consent pursuant to Article 293 (3) allowing the State Governments to raise loans as specified in Annual Plans. Financial planning, investing (spending money), and financing are among the duties of the financial manager (raising money).
In support of the Ministry’s mission to “promote robust economic development by administering and maintaining healthy public finances, providing a good framework for public and private initiatives, and mobilising inflows and resources,” this division plays a crucial role overall.
NEPSE and Finance Ministry
The election of a new government and the selection of Bishnu Poudel as the new Finance Minister have been well received by the nation’s stock market. The Nepal Stock Exchange (Nepse) increased by 116.74 points over the previous two trading days as Poudel assumed control of the Ministry of Finance for the third time.
On Tuesday, the benchmark index reached a four-month high and daily turnover reached a five-month high.
The index increased by 59.86 points on Tuesday to close at 1983.95 points after rising by 56.87 points on Monday. On Monday and Tuesday, Nepse’s daily turnover also dramatically increased. On Tuesday, Nepse reported a daily turnover of Rs 3.88 billion, up 85.64 percent from Monday.
After news of Poudel’s appointment as finance minister started to emerge in the media on Monday morning, the stock market began to rise. Monday and Tuesday saw the market rise as a result of Poudel’s prior role as finance minister. During both of Poudel’s terms in office, the first in 2015 and the second in 2020, the local stock market reached a record high. Investors now anticipate more of the same from Poudel during his third term. Nepse crossed the 1,800 mark for the first time in 2015, and by the end of Poudel’s tenure as finance minister in 2020, the bourse reached an all-time high by crossing 3,200 points.
After Nepal Rastra Bank (NRB) tightened margin lending, the banking system experienced a liquidity shortage, high interest rates, and a bear market for more than a year. As investors wait for Poudel’s actions to restore stock investors’ confidence, the stock market experienced significant gains. If the market maintains its advances from Monday and Tuesday remains to be seen. Investor Tulsi Ram Dhakal declared, “Investors have restored their confidence with the appointment of Bishnu Paudel as the finance minister. Given Poudel’s prior tenures as finance minister, he claims that investors have hoped for policy revisions from the administration. Minister Paudel met with a few executives from investor organisations on Tuesday and gave them his commitment to addressing the issues with the nation’s capital market.
So, after the new government there is a positive hope towards investors. Previously, when Bishnu poudel was appointed as finance minister in 5 November 2015, the NEPSE index was 1090.68, but when he resigned the index was already more 1890. So, we can say the investor and trader have the positive believe about the new finance minister.