In 1963, the Government of Nepal established the Ministry of Economic and Planning(MEP). In addition to the formulation of periodic plans, the MEP was given the responsibility of handling economic affairs of the country. The MEP was also charged with the responsibility of negotiating and concluding agreements with donors even though any formal procedures and mechanism to mobilize foreign aid in a coordinated manner were missing.
In 1968, the MEP was dissolved and a separate National Planning Commission (NPC), and the Ministry of Finance (MOF) was established. Since then, MOF has been responsible for all economic and financial affairs of the country.
The MOF is the central authority of the Government of Nepal charged with the responsibilities for maintaining both micro and macroeconomic stability in the country. Moreover, the key role of the Ministry lies with the more rational allocation of resources; better management of public expenditure; enhanced mobilization of both internal and external resources; greater performance in public investments and strengthening of public enterprises productive capacity; open and simple foreign exchange policies and regulation, and prudent fiscal and monetary policies.
Finance Minister remains at the Apex in the Ministry, whereas, bureaucratically it is headed by Finance Secretary. For practical purposes, the Ministry is further divided into the various organization - Divisions and Departments.
The Divisions are located within the Ministry and manned by the Joint Secretaries, Under Secretaries, Section Officers, and other supporting staffs.
- International Economic Cooperation Co-ordination Division
- Budget and Programme Division
- Financial Sector Management & Corporation Co-ordination Division
- Revenue Management Division
- Economic Policy Analysis Division
- Administrative Division
- Legal and Judgement Execution Division
- Planning, Monitoring and Evaluation Division
Similarly, The Ministry of Finance has following departments & central Offices:
Office of the Financial Comptroller General is headed by a Special Class Level Officer and has its network in all 75 districts, whereas the Departments are headed by First Class Level Officer.
Also, a member of Agencies, Boards, Banks, and the financial institution are overseen by the Ministry of Finance. They include:
- Nepal Rastra Bank (Central Bank)
- Securities Board
- Agriculture Development Bank
- Rastriya Banijya Bank
- Deposit Insurance and Credit Guarantee Corporation
- Stock Exchange Center
- Citizen Investment Trust
- Employees Provident Fund
- Nepal Insurance Corporation
- Bima Samittee