The Ministry of Finance has issued the Third Public Financial Management Reform National Strategy (2082-2087) with the goal of increasing efficiency in resource management, maintaining financial discipline and promoting public service delivery. Since it is the first strategy introduced after the implementation of the federal government system in Nepal, it is claimed that it will help the government to strategically allocate and use financial resources to achieve national obligations and social and economic goals in the context of federal government.

Mainly, the objective of the strategy is to be oriented towards results through reliable evidence-based budget and sustainable financial discipline, performance-based budget system, modern, simple and effective system for revenue collection and reporting.  In the

strategy, initiatives have also been taken for effective procurement process and stable administration mechanism. Sustainable public debt management and reduction of financial risk, strong coordination between intergovernmental and inter-agency and automatic financial transfer are also planned by the strategy 

is preferred. The strategy also aims to develop integrated public financial management information technology systems that can be accessed by citizens and make public service delivery more efficient. 

The new strategy also includes starting a participatory audit process through citizen engagement and adjusting climate and gender priorities in financial plans. The strategy also aims to promote trust and accountability through transparent, inclusive governance. 

"The strategy aims to institutionalize a strong public financial management system that promotes transparency, good governance and coordinated efforts between all three levels of government," it is said in the strategy, "The strategy also aims to support the government's efforts to strengthen the practice of financial federalism in the country through necessary modifications and further reforms."  The

strategy emphasizes citizen engagement, climate and gender responsive public financial management practices as priorities for all levels of government to advance the sustainable reform process. This strategy has been prepared in such a way that it is compatible with the constitutional provisions related to financial federalism to ensure sources of expenditure and revenue to the union, state and local levels.  The

strategy includes suggestions and references from internal revenue mobilization strategy, public investment management, tax administration accounting diagnostic tools, debt management performance evaluation, medium-term debt strategy and other regional strategies related to the public financial management cycle.  The

strategy emphasizes interlinking digital systems, improving intergovernmental coordination, and pursuing climate and gender responsive public financial management practices. "Nepal's own resources as well as development partners are also providing significant support in the reform initiatives," the strategy says, "despite remarkable progress, challenges in the adjustment of financial responsibilities between the federal, provincial and local levels and implementation of compliance still remain. A coordinated national strategy is needed to advance these reform efforts in a manner consistent with Nepal's long-term economic and development goals.' To address these challenges, the new strategy prioritizes policy and legal reforms, systemic adjustments, evidence-based decision-making processes and programs related to strengthening mechanisms.  The

strategy emphasizes institutional arrangements that standardize processes, increase citizen participation, promote accountability, and increase efficiency. These reforms include capacity building, leveraging technology and adopting climate and gender sensitivities in the strategy. 

The strategy is to achieve the highest returns through transparency, institutional citizen participation, efficient management of public assets, minimization of financial risks, maximum utilization of resources and reliable annual and medium-term budgets. For the achievement of these goals, the Ministry of Finance, the National Planning Commission and the major stakeholders including the provincial and local levels have a special role. 

It also aims to establish a reliable public financial management system by ensuring efficient allocation of resources, transparency and accountability at all levels of government. It is said that this will help increase public confidence in the process of financial management by increasing the quality of service delivery. Achieving the expected returns, policy environment, committed leadership and professionalism have been envisioned.