The recurrent expenditure of the country is rising. As the burden of recurrent expenses and financial management continues to grow, the recently introduced budget for the fiscal year 2081/82 (2024/25) shows that the share of capital expenditure is less than 19%. With time, the demand for larger and more ambitious development projects is increasing, raising concerns about their funding sources. Given that the government’s expected revenue collection barely covers recurrent expenditures, managing the development budget has become a major challenge.
Several efforts have been made to control recurrent expenditure. The government has announced mergers and dissolutions of various governmental bodies at different times, but their implementation has not been effective.
One of the widely discussed topics is the size of the Nepalese Army. There are ongoing discussions and debates at different levels about whether to reduce or increase the number of army personnel. Strong opinions exist on both sides of the argument.
Currently, the Nepalese Army has approximately 98,000 personnel. As a key component of the country’s security system, the army is mostly confined to barracks and is mobilized mainly in emergencies. Despite the continuous challenges regarding border security and disputes, the army has not yet been deployed to the border areas. Additionally, given Nepal’s border disputes with two major neighboring powers, diplomatic efforts should be prioritized over military deployment.
In recent years, the army has been involved in development and construction projects, successfully executing several challenging and complex tasks. Currently, the Nepalese Army is responsible for constructing the Kathmandu-Terai/Madhes Expressway, a national pride project.
Recently, concerns have been raised about the government's increasing social responsibilities, leading to fears that even the basic services and facilities provided to the public might be reduced. To cut administrative costs, the government should merge institutions with similar functions and streamline unnecessarily large public structures to make them more efficient.
The primary role of the Nepalese Army is to maintain peace and security, and the current number of personnel appears relatively large for this purpose. If development projects are to be carried out through the army, questions may arise about the role of other development agencies. Given the current need to increase investment in essential sectors such as education and healthcare, it is reasonable to consider reducing spending on lower-priority areas. Therefore, cutting the number of military personnel and reallocating funds to critical sectors like education and healthcare seems like a logical approach to improving the country’s economy.
Moreover, Nepal’s security system consists of three main forces: the Nepal Police, the Armed Police Force, and the Nepalese Army. The Armed Police Force serves as an intermediary between the Nepal Police and the Nepalese Army in terms of authority and organizational structure. Integrating the Armed Police Force into either the Nepal Police or the Nepalese Army could help balance the state’s administrative burden.
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