Managing Nepal’s fiscal risks

These risks are caused by political and administrative errors made in managing the public economy.

The Nepali state has been struggling hard to liberate itself from the perpetual perils of a small size economy, low level of capital formation, and youth unemployment. Despite key progress made in elected democracy, the country has not been able to enlarge the size of its economy and bring substantial economic fruits to the people. The GDP at its current price is just Rs48.5 billion , and annual per capita income is around $1372 . These figures are even below than the South Asian average.