President Ramchandra Paudel on Friday presented the government’s policies and programmes for the upcoming fiscal year 2025-26, announcing plans to scrap unviable projects, structurally reform the tax system, promote digital banking, and expand green energy initiatives.

“The government will reassess all ongoing and proposed infrastructure projects based on available resources, and those lacking completion prospects will be scrapped or suspended,” said President Paudel, addressing the joint meeting of the House of Representatives and the National Assembly.

He added that all infrastructure projects announced by past governments would be reprioritised. “Projects will be categorised and scheduled to be completed within the current term of Parliament,” he said.

On tax reforms, President Paudel said the government will undertake a structural overhaul of the tax system aimed at industrialisation, investment promotion, and enhancing the economy’s competitiveness. “A taxpayer-friendly revenue system will be developed using improved tax administration and greater use of information technology,” he said.

To modernise financial transactions, the government plans to establish a digital bank and promote cashless financial services. “Digital infrastructure will be expanded, and policies and laws will be revised to facilitate the development of a digital economy,” said the President. He also highlighted plans to extend faceless public services and provide maximum services through the Nagarik App.

In the energy sector, the President said the government will adopt a suitable financial model to develop multipurpose and reservoir-based hydropower projects, with a focus on addressing power demands during the dry season and ensuring energy security.

“Remittance from migrant workers will be mobilised for hydropower projects under the People’s Hydropower Programme,” he added, noting that regulatory frameworks for cross-border transmission and wheeling charges will also be established.

President Paudel also announced the initial steps towards commercial production of green hydrogen in Nepal and the promotion of electric appliances across households, agriculture, industries, and transport. The government also plans to implement its policy of blending petrol with bioethanol to reduce fossil fuel dependence.

In the forestry sector, the government aims to boost forest-based production to increase domestic supply and create jobs.

The President further announced that the School Education Bill, currently under parliamentary discussion, will be passed in the ongoing budget session. “Legal, policy, and institutional reforms will be made to improve school education. By 2084 BS, arrangements will be made for all children to receive basic education,” he said.

On the environmental front, President Paudel said Euro 6 emission standards will be introduced for vehicles to curb air pollution. “Watershed management, land restoration, and improved human-wildlife conflict response through insurance-based relief will be prioritised,” he added.

The Chure Conservation Plan will be reviewed and restructured as the National Chure Conservation Project.

Earlier, Prime Minister KP Sharma Oli handed over a copy of the address to the head of state. Speaker Devraj Ghimire, National Assembly Chairperson Narayan Prasad Dahal, and Federal Parliament General Secretary Padma Prasad Pandey welcomed the President upon his arrival.

President Paudel, who is also the Supreme Commander of the Nepal Army, was received with a ceremonial guard of honour.

Vice President Ramsahay Prasad Yadav, former prime ministers and speakers, heads and members of constitutional bodies, diplomats, and representatives from the private sector attended the session.

The parliament premises have been decorated with national flags, and guests were welcomed at the venue’s water fountain area.

As per Article 95 of the constitution, the President addresses a joint session of the federal parliament to present the government’s policies and programmes.

The parliament secretariat has scheduled deliberations and endorsement of the policy document between May 5 and May 11. Discussions on the principles and priorities of the appropriation bill will begin on May 14. As mandated by the constitution, the government must present its budget for the next fiscal year in a joint session of the federal parliament on May 29 (this year).

Highlights from the policies and programmes

· Commitment to democratic values: The government is dedicated to strengthening the federal democratic republic, safeguarding the achievements of past movements, and fostering national pride in Nepal’s history and sacrifices.

· Economic and social transformation: Emphasis is placed on achieving economic dynamism, eradicating corruption, and ensuring justice to fulfil the national aspiration of a “Prosperous Nepal, Happy Nepali.”

· Good governance and development: The government is committed to implementing a shared vision from the coalition’s minimum programme, focusing on good governance and rapid economic development.

· Countering regressive forces: There is a firm resolve to counter regressive and anarchic tendencies that spread misinformation against the constitution and democratic system.

· Political stability and consensus: The government promotes healthy competition, dialogue, and cooperation to ensure political stability and policy consistency.

· Development reforms: The focus is on addressing weaknesses in development processes, prioritising infrastructure projects, and categorising projects for completion within the fiscal year 2025-26.

· Education reform: University education will be transformed to focus on knowledge, research, and development, with comprehensive improvements in curricula and teaching methods.

· Entrepreneurship and employment: An “Entrepreneurship-Friendly Education” policy will be introduced to address skill gaps, promote start-ups, and create economic opportunities for young people.

· Healthcare accessibility: Healthcare services will be enhanced to be affordable and accessible, with all health programmes integrated into the health insurance system to ensure sustainability.

· Agricultural modernisation: Mechanisation and commercialisation of agriculture will be expedited to ensure self-reliance in food production and create an ecosystem for youth involvement.

· Infrastructure development: Strategic road networks, railway expansion, and modern infrastructure such as tunnels and overpasses will be prioritised for efficient transport.

· Energy development: Renewable energy sources (solar, wind, hydrogen) will be expanded, and electricity supply will be ensured through multi-purpose hydropower projects to achieve energy security.

· Industrial and trade promotion: Industrial growth, private investment, and export promotion will be encouraged through trade agreements and special economic zones.

· Tourism development: Nepal will be positioned as a hub for natural, cultural, and spiritual tourism, with initiatives such as yoga and meditation to boost employment and income.

· Social inclusion and empowerment: Priority will be given for women’s upliftment, eliminating gender-based violence, and ensuring economic empowerment for marginalised groups.

· Environmental sustainability: Climate change challenges will be addressed, with the Sagarmatha Dialogue and a commitment to net-zero carbon emissions by 2045.

· Digital transformation: Digital infrastructure will be expanded, cybersecurity ensured, and public services integrated into the Citizen App for efficient service delivery.

· Security enhancement: Security agencies will be strengthened, well-equipped, modernised, and border security expanded to combat crime and ensure national safety.

· Judicial reforms: The justice system will be simplified and made transparent, accessible, and victim-friendly, with improvements in legal aid for marginalised groups.

· Foreign policy and diplomacy: Sovereignty and national interests will be upheld through balanced international relations, regional cooperation, and economic diplomacy.