As much as Nepal's economy is facing serious and alarming risks, it does not seem to be felt with the seriousness of the situation anywhere in the entire state power, ruling or opposition political parties and the overall structure of policy making and implementation.

The daily management of the economy, the operation of the state system to make the economy growth-oriented and the expansion of public services, and the three complementary dimensions of economic governance, but there is a general feeling that the state government has left the good intention of keeping these complementary dimensions as the immediate and foremost priority of the state administration.

Because, as much as the debate-discussions about constitutional amendments, changes in political equations and geopolitical maneuvers are heated in the highest circles of the government, the growing complications of the economy rarely get a place. Why all these unseasonal tikdams became necessary if the people could not get and feel the economic security they expected from the constitution, state power and political leadership.

The single and unconditional need of all these is to build a dynamic economy. Any other blank paper revolution without reforming the economy can divert their attention from the expectations and aspirations of the people and cannot address them. Therefore, the first, second and third priorities for Nepal now are and should be economy, economy and economy. 

political interpretation of the index

The so-called economic analysts and the mass media simultaneously deny the fact that the external sector of the economy is strong but there are problems only in the internal economic management.

Or, it is necessary to understand that the political executives and government officials who are in charge of running the economy show the small and unsustainable improvements seen in some indices and that their political compulsion is behind the claim that the economy is gradually improving. Trends in the fundamental pillars of the economy have revealed a scenario that cannot be optimistic. 

Foreign exchange reserves have exceeded 16.5 billion US dollars, both current account and current accounts are in surplus, more than seven and a half billion rupees are available for investment in the banking system, and the interest rate has decreased and the revenue collection rate has increased marginally compared to last year. No place at all.

No matter how many arguments are made, the most important determinant of the health of an economy is the reliable base and sustainable trend of its income or revenue. The situation of revenue collection and other sources of income has been deplorable for the last five years and now it has reached a very alarming state. After five months of this financial year, barely 27 percent of the target of raising 14 trillion 19 billion rupees has been raised. Even on a general average such recovery rate was required to be at least 40 percent.

or, the revenue collection rate is less than 70 percent of the target. By the end of the financial year, if the revenue can reach 75% of the target, then the state's expenses will have to be covered with a total income of 10 billion rupees. If the proposed budget of 18 trillion 60 billion rupees can be spent, the debt of 8 trillion will be added in one year. As the foreign development aid and subsidies are very insignificant, there is a compulsion to increase the burden of debt even to cover ordinary expenses. Public debt has already reached 45 percent of the gross domestic product, which has not been used in the non-productive sector at all. 

In the last five months, capital expenditure exceeding 40-50 percent of the target was only 12 percent, which has revealed the extreme inefficiency of the state. Perhaps for fear of drawing attention to themselves, the partner parties in the state administration are reluctant to find out the reasons for this. The two ruling parties have become a coordination mechanism. But this is also the reason why it is difficult to translate the economic issues that arise sporadically into implementation. Those in government positions have a mentality of showing their incompetence when they apply the suggestions received from the mechanism.

Not only are deposits piling up in the banking system, bad loans are crossing 5 percent for the first time in a decade and a half. This amount is about two and a half billion rupees. A significant decrease in imports shows that the demand for goods both in terms of consumption and development work has decreased significantly, while the demand for credit decreases, while development, productivity and job creation all decrease simultaneously.

Co-operatives, microfinance institutions and policy arrangements to solve the meter bagging problem have remained a mirage. In spite of many distortions, the demand of the consumer market, which is maintained by cooperatives and microfinance, has been directly affected by the uncertainty of their future. There is no possibility that the source of revenue will expand for many years, especially when the

comes. The only way to increase potential revenue is to make the economy viable and improve the amount of tax that the state gets from existing taxes and other sources of revenue by increasing the income/profit. Deep thinking and homework is not being done anywhere in this regard.

economy and state system

Nepal's adopted federal state system and its expected and possible economic outcome (economic outcome) have not yet started a political and intellectual debate. There has not been a factual accounting of where and how the federal system has contributed to productivity and economic growth, infrastructure and public service delivery and governance and social security in different dimensions and where it has failed to address expectations. Its necessity and importance are not understood.

There has been no initiative on the part of the state to evaluate the performance and improvement areas of municipalities of various sizes, capacities and geographical locations based on the practice of the past eight years. As academic bodies are not well resourced, the few anecdotal and superficial studies conducted by NGOs are often creating false interpretations. Demands are coming forward that the

provinces are expensive, have not done anything and should be abolished. But it is necessary for the national thinking to be directed towards making the most active structure of economic and development administration and plan implementation to those units that identify the federal system with 'leisure' but political rights. 

There is no sufficient capital expenditure at the provincial and municipal levels and a separate strategy is needed to develop both the governance and economic operational capacity of those levels to improve the situation in the consolidated fund of the provinces and municipalities. It is not possible to achieve both goals by keeping federalism as a political system and the expected economic prosperity and expansion of public facilities separately. A national approach and action plan to understand and operate the overall economic policy of federalism is indispensable.

Economy and governance

The core concept of governance is related to economic behavior. As soon as the state is run by those who do not have unhealthy private interests and the people inside the country and outside development partners realize it, the speed of the country's development will automatically increase.

Once the resources on one side are fully utilized, the return on every rupee invested increases significantly. An increase in returns or profits means an increase in the revenue source of the state. Similarly, as soon as the credibility of the state increases, the amount of aid received from development partners can also be expected to improve.

Nepal is still ranked 180th in Transparency International's Corruption Perceptions Index. Since the Financial Action Task Force (FATF), an international organization related to money laundering, failed to do effective work within the deadline given two years ago for amending laws and institutional reforms, Nepal is at risk of being on FATF's "grey list" again. 

The 11th point of the joint statement published after Prime Minister KP Sharma Oli's visit to the People's Republic of China last week mentions, 'Both sides to promote a just and equitable world order and global benefits and inclusive economic globalization, to oppose all forms of unilateralism and protectionism. To advocate true multilateralism, promote greater democracy in international relations and jointly protect international fairness and justice and the common interests of developing countries. are committed to promoting it.'

However, how many of these global economic and commercial justice voices raised by Nepal, which is losing its economic and diplomatic status, will be heard and how effective will they bring? This question is an answer in itself.

Nepal has to defend its existence amid the difficult geopolitical conflict of how China will respond to the 'Belt and Road Initiative' (BRE), India's 'Neighborhood First' or the US's Indo-Pacific strategy. But the main reason for this unnecessary indifference is mainly because we are not able to set economic priorities and do diplomatic negotiations based on that.

There is currently a debate on loan or grant in Serofero of BRI. There is a political debate over who to borrow from and who not to borrow from. If Nepal pays attention to the selection, prioritization and implementation of its national priority projects (project readiness), the mobilization of financial resources will be much easier. 50 

percent is from the World Bank, 33 percent from the Asian Development Bank and 5 percent from the International Monetary Fund. Among the bilateral loans, Japan's total debt is 5% and China's is 2.5%. International commercial development banks, venture funds and commercial financial institutions have not invested in Nepal. Since debt is indispensable for the development of the country, it is always the responsibility of the government to show its governance skills so that it does not become a subject of geopolitical competition. A radical change is needed in the traditional thinking and style of the state to invest in