Finance Minister Vows To End 'Policy Capture' and 'Lootocracy'

Kathmandu. Finance Minister Dr. Swarnim Wagle has stated that the government's main goal is to end the 'policy capture' and 'lootocracy' in the country's economy and establish good governance. Addressing a program organized by the Society of Economic Journalists-Nepal (SEJON) in the capital, he said the government would be ruthless in matters of good governance. 

He clarified that the government has divided good governance into two levels, macro and micro, and is moving forward with reforms. Wagle said, 'We have said good governance. This has been broken down into macro and micro. Macro is policy and institutional capture. We are in the process of correcting the lootocracy and kleptocracy we were in.' 

He clarified that macro good governance means correcting institutional capture in the state's mechanisms and policies. Similarly, under micro good governance, the government is working to improve service delivery to the general public, ensuring that people do not have to wait in line at government offices, pay bribes, and can receive services digitally through phone calls. He said the government is working to ensure this. 

While the private sector is protesting after the government arrested controversial businessman Deepak Bhatta and his business partners Sulabh Agrawal, Shekhar Golchha, among others, Finance Minister Wagle warned that no one involved in crime would be spared. He stated that the private sector should not say that morale has dropped when those who commit crimes are arrested. 

Urging honest businessmen not to be intimidated, he said, 'Entrepreneurs who have not made mistakes, who earn through hard work, pay taxes, and create employment do not need to worry. However, those who commit crimes under the guise of entrepreneurship and act as criminals will not be exempt; they should be afraid.' He stated that the private sector is the driver of an economy worth more than 70 trillion and the main engine of 7 percent economic growth. 

Hinting at administrative reforms, Finance Minister Wagle revealed that the process of abolishing the Revenue Investigation Department, which was accused of harassing the private sector and being a center for extortion, has begun. 'We have dismantled the work of stopping trucks and extorting money from businessmen by calling them,' he said. 

He informed that the legitimate investigation work of the department will now be carried out by the Inland Revenue Department, the Anti-Money Laundering Department, or the concerned ministry. Similarly, he said that the government has started the process of abolishing 17 old and irrelevant laws dating back to 2017/18 BS and is undertaking legal reforms based on the recommendations of 15 reports. 

Acknowledging that some legal provisions in Nepal tend to make even honest businessmen dishonest, he expressed his commitment to reform them. He said that Nepal should adopt the 'Privately Financed Infrastructure' model, inspired by the infrastructure miracles achieved by Nitin Gadkari in India, and the government will now move forward accordingly. 

He shared that the plan is to promote the private sector as a healthy partner, as national ambitions cannot be fulfilled without domestic, expatriate, and foreign investment. Informing that more than 30 reform efforts have been made in the 30 days since the government was formed, Wagle said that an online system has been introduced to end the hassle faced by Indian tourists at border crossings. He expressed confidence that the Ministry of Finance itself has initiated four to five digitalization campaigns, which will make service delivery transparent.