Nepal's election system has been central to its democratic transition since the adoption of the 2015 Constitution, which established a federal democratic republic. However, the system faces serious challenges—particularly high costs and widespread corruption—that undermine its fairness and integrity. Heavy reliance on private donations and a lack of transparency in campaign financing have created a vicious cycle: candidates incur huge expenses and often resort to corrupt practices to recover these costs. This article explores ways to reform Nepal's election system to ensure fair, transparent, and cost-free elections for candidates, focusing on solutions such as public financing and other proposed reforms.
Corruption and Lack of Transparency
The soaring cost of elections fuels corruption, as candidates depend heavily on private donations from businesses and contractors who, in return, expect policy favors or government contracts. This system encourages cronyism and collusion. Because candidates largely finance their own campaigns, only the wealthy can afford to contest elections. The problem is further aggravated by the lack of transparency in party finances, with many political parties failing to submit audit reports to the Election Commission.
Public Financing of Elections
One of the most effective solutions to address the high cost of elections and related corruption is public financing. Under this system, the government provides funds to political parties and candidates to cover campaign expenses, reducing or eliminating the need for personal spending or private donations.
To promote cleaner and more accountable politics, several reforms have been suggested for political parties. Transparency is paramount: parties must be required to disclose all financial contributions, expenditures, and loans. These detailed reports should be publicly accessible via a dedicated website, ensuring real-time scrutiny.
Equally important is the establishment of internal democracy within parties. This involves fostering grassroots participation in candidate selection through transparent and competitive primaries, reducing nepotism and favoritism in nominations.
To ensure fair representation, a proportional representation system should include specific safeguards. Candidate lists must reflect gender and ethnic balance, and close relatives of party leaders should be excluded to prevent misuse.
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Public funding for political parties should also be structured to encourage responsible growth and performance. Initial seed funding can be tied to party membership, while additional funding should depend on past electoral performance.
This approach would level the playing field, enabling candidates without personal wealth to compete and reducing corruption by minimizing reliance on private donors. International examples—such as the U.S. Federal Election Commission’s matching funds for presidential candidates and public financing models in Connecticut, Maine, and Arizona—demonstrate how effective such systems can be when combined with strict transparency measures.
Other Electoral Reform Proposals
Beyond public financing, other reforms aim to make Nepal’s electoral system more inclusive and accountable, though they do not directly achieve zero-expense elections.
One proposed measure is stricter party registration requirements. A draft bill reported on March 22, 2025, requires political parties to field candidates in at least 70 percent of constituencies and maintain inclusive structures at all levels to qualify for national party status. While this promotes broader representation, it could disadvantage smaller or emerging parties.
The Election Commission has also proposed a “No Vote” option, announced on August 29, 2023, allowing voters to reject all candidates. If over 51 percent of voters select this option, the election could be invalidated. This empowers voters dissatisfied with the available choices.
Further recommendations focus on inclusivity through term limits and gender representation. On July 3, 2023, the Commission suggested limiting proportional representation (PR) candidates to two terms and mandating that at least 33 percent of first-past-the-post (FPTP) candidates be women. These steps aim to promote diversity and prevent entrenched political dominance.
There is also growing support for a fully proportional representation system with a 5 percent vote threshold, which could strengthen representation and reduce political fragmentation. However, without public financing, this system could raise election costs further.
Additionally, on August 9, 2024, Nepal’s Supreme Court ordered amendments to electoral laws to uphold constitutional principles of inclusiveness, emphasizing proportional representation that genuinely reflects Nepal’s diversity.
Collectively, these reforms aim to strengthen democracy, though effective implementation and complementary financing mechanisms will be critical. While they enhance accountability and inclusivity, they do not directly address the financial burden on candidates. Public financing remains essential for achieving truly cost-free elections.
Efforts by the Election Commission
The Election Commission of Nepal has taken steps to tackle election-related corruption and overspending, but these efforts have largely been inadequate. In 2023, it fined more than 2,400 candidates for failing to submit expense reports from the 2022 elections and warned them of future disqualification. While this showed an intent to enforce rules, overspending continues.
Similarly, a 2020 plan to use financial tracking software faced internal skepticism and resistance from political parties, limiting its impact. Although the Commission has proposed legal reforms such as the “No Vote” option and term limits, progress has been slow, with major laws still pending as of late 2023.
Implementing comprehensive reforms like public financing faces multiple hurdles, including economic constraints, political resistance to transparency, and limited administrative capacity. Public trust in the electoral process remains low, and restoring it will require consistent, visible enforcement.
Nevertheless, international experience offers hope. Countries such as the United States, Germany, Brazil, and South Korea have successfully introduced public financing models linked to transparency and accountability. Nepal could adapt such models to its context, focusing on inclusivity and strong oversight to curb the influence of money in politics and strengthen democratic integrity.
Recommendations for the Election Commission
To achieve fair, clean, and cost-free elections, the Election Commission should advocate for a comprehensive public financing policy backed by strict transparency and accountability measures. Stronger enforcement through effective monitoring and financial tracking systems is critical to curb overspending.
The Commission must also ensure inclusivity by implementing court-mandated reforms on gender and ethnic representation. Public awareness campaigns can help build voter support for these initiatives. Finally, Nepal should adapt proven public financing models from other countries, customizing them to its political and economic realities.
Conclusion
Elections in Nepal are among the most expensive globally—estimated to be 147 times costlier than in India, despite Nepal’s lower GDP and income levels. In 2017, NPR 11.28 billion was allocated for local elections, while individual candidates often spent millions, far exceeding legal limits. These excessive costs, combined with widespread corruption, pose a serious threat to Nepal’s democracy.
Public financing offers a practical solution by reducing reliance on private donations and creating a fairer system. While other reforms are valuable, public financing directly addresses the root problem: the financial burden on candidates. The Election Commission must take bold, decisive action to implement such measures, drawing on global best practices while adapting them to Nepal’s unique challenges.
