Nepali Congress Special Convention: Gen Secy Gagan Thapa Proposes Funding Election Expenses from State Treasury

Nepali Congress General Secretary Gagan Kumar Thapa has proposed providing state funding to political parties to make election spending more transparent.

Presenting a contemporary political report at the party’s Special General Convention called by the rival faction on Monday, Thapa suggested that political parties should receive grants from the state treasury based on the number of votes they secure in elections.

“To ensure transparency in election expenses, a system will be introduced to provide grants to political parties from the state treasury based on their vote share, while enforcing strict financial discipline over the economic activities of political parties,” the proposal states.

Although the issue of state funding for election expenses has long been debated, political parties have so far refrained from formally proposing such a mechanism. However, a high-level Economic Reform Recommendation Commission, led by Finance Minister Rameshore Khanal, has also suggested that the government should provide election budgets to political parties.

The commission has recommended introducing a new law on political finance or amending provisions of the Political Parties Act, 2016—specifically Sections 37 and 38—and Section 72 of the House of Representatives Election Act, 2017, to allow annual grants from the federal treasury to nationally recognized political parties based on defined criteria.

The report warns that allowing election candidates to spend freely using personal wealth or individually raised donations encourages a tendency to recover election investments by any means after being elected. “Therefore, regulation of such financial resources is necessary,” it states.

The Government of Nepal had earlier considered a similar provision. When Dr Prakash Chandra Lohani served as finance minister, the budget for fiscal year 2003/04 announced a plan to provide political parties with a fixed amount based on the votes they received in the previous election. At the time, a proposal of Rs 20 per vote was put forward.

In addition, Thapa has proposed incorporating the right to a “no vote” option and voting rights for Nepalis living abroad into the law. Reflecting the spirit of the Gen-Z movement held on September 8 and 9, the report commits to addressing its legitimate demands, promoting good governance, improving service delivery, and ensuring youth representation.

The report also pays tribute to those who lost their lives during the movement following incidents of suppression and violence, and pledges legal action against those responsible.