Government Plans to Digitalize Public Finance System Using AI

The government has decided to strengthen the digital backbone of Nepal’s economy by introducing artificial intelligence (AI) in areas ranging from budget preparation to the tax system. A report submitted to the Ministry of Finance recommends a full digital transformation of public financial management within the next five years by integrating budget information systems, tax administration, customs, and treasury management into a single platform. The report also highlights the use of big data and AI for realistic budget planning, a faceless tax audit system, automated tax adjustments through electronic invoicing, and the use of advanced technology at customs points to control revenue leakage. In addition, it proposes the establishment of a secure financial data center, the development of a national data exchange platform, and the creation of skilled IT manpower, which is expected to make Nepal’s public finance system more transparent, secure, and technology-friendly.