The ruling Rastriya Swatantra Party has adopted a core policy of building a welfare state with a liberal economy.

The party said it believes in a liberal economy with social justice, committed to the equitable progress of Nepalis, and identifies itself as a pluralist democratic party, clarifying this position.

At the convention, senior party leader and Finance Minister Swarnim Wagle presented the party’s political-economic document, which positions the RSP as a pluralist democratic force committed to social justice, inclusive development and equitable prosperity.

The document states that the party’s goal is to build a socially just and inclusive society through accountable, rule-based governance within a fully democratic republican system that guarantees individual liberty and fundamental rights.

It outlines a model of governance that combines a competitive social market economy with strong regulatory institutions. The party calls for the sustainable mobilisation of public, private and community resources, expansion of employment and national income, promotion of investment-friendly conditions, and strengthening of social capital rooted in labour. It also stresses environmental balance and climate responsibility.

Party chair Rabi Lamichhane, in a political report presented to the closed session of the convention on Tuesday, said the RSP has concluded that the constitution should not be treated as a political ideology.

He said the party has adopted social democracy as its core philosophy after assessing Nepal’s political and economic realities, the structure of the state and public expectations.

“The RSP is neither left nor right, and it does not intend to remain confined within that polarisation,” Lamichhane said. “We prioritise practical, rational and reality-based approaches rather than rigid ideological frameworks.”

He said the party respects the contribution of traditional ideological schools but added that their relevance should be judged through practical outcomes and their ability to ensure social justice.

Lamichhane said policies supporting private-sector growth, investment and market competition may be viewed as right-leaning, while positions on universal access to health and education may be seen as left-leaning. Similarly, support for start-ups and labour rights, including minimum wages and social security, reflects a blended approach.

According to him, the party believes governance, society and the economy should be shaped through a balanced and context-driven framework rather than a single ideological model.

He said the RSP’s version of social democracy rests on five pillars: a competitive liberal economy, rule of law, a people-accountable government, a welfare state, and an inclusive and equitable society.

The party reiterated its full commitment to Nepal’s federal democratic republican system, saying it sees no alternative to the current constitutional structure. It described the system as rooted in Nepal’s political experience and global democratic development, while emphasising the need for institutional strengthening.

At the same time, the party opened debate on major structural reforms, including restructuring federalism through the abolition of provinces, introducing non-partisan local governments, and reducing the number of local units by one-third.

The convention also endorsed a discussion agenda on constitutional reform, including amendment or possible rewriting of the constitution

“We will revise the current constitution when our strength allows,” Wagle said, adding that the RSP has already entered several reform proposals into public debate, including direct election of the prime minister, barring lawmakers from becoming ministers, non-partisan local bodies, and restructuring federalism through the removal of provinces.

The document also highlights the party’s commitment to a market-oriented but socially responsible economic system, driven by the sustainable use of public, private and community resources.

It further underscores respect for Nepal’s historical identity, Sanatan civilisation, religious and cultural diversity, and coexistence, alongside commitments to labour-based social capital and environmental sustainability.

Party reports Rs 122.4 million income

The RSP reported a total income of Rs 122.4 million in the current fiscal year 2025-26, according to a financial report presented by party treasurer Lima Adhikari at the convention.

The party was established in the fiscal year 2021-22 with an initial income of Rs410,000.

The report shows that donations and voluntary contributions accounted for 51.43 percent of total income. Fees from candidates contesting elections under both first-past-the-post and proportional representation systems made up 26.61 percent, while membership fees contributed 17.98 percent. The remaining 2.52 percent came from party levies.