This study is aimed to investigate the nexus between financial inclusion and economic growth of Nepal. This study employs descriptive as well as multiple regression model using the data over the period of mid-July 2014 to mid-July 2021 to examine the linkage between financial inclusion and economic growth of Nepal. The empirical results of the study reveal that there is strong association of financial inclusion with economic growth, however, there is no positive and robust impact of financial inclusion on economic growth of Nepal. In contrary, overall analysis of the study shows the strong evidence to support the view that financial inclusion is the backbone of the Nepali economy. This study covers only limited indicators of financial inclusion and limited periods of data which are not enough to evaluate the long-run relations of financial inclusion and growth of Nepal. This study suggests that policies promoting financial deepening and penetration and reforming the financial sectors to bond with the financial inclusion for economic growth of Nepal. In this study, we attempt to assess the significance of financial inclusion in economic growth so that piecemeal efforts can be made to combat Nepal's policy hitches and logjams.

This study intended to evaluate the trends of public expenditure and to show the relationship between public expenditure and economic growth in Nepal. In order to fulfill these objectives, the chart, correlation, and regression were employed by using time series data sets over the period of 1974/75 to 20108/19. Economic growth (RGDP) (proxied as the real GDP with rebasing 2009/10) as dependent variable and recurrent expenditure (RE), capital expenditure (CE), expenditure on education (EE), expenditure on health (HE), and expenditure on transportation and communication (TCE) were proxied as public expenditure. The study revealed that there is positive correlation between dependent and predictors. The results of regression also confirmed that there is positive relationship between public expenditure on economic growth of Nepal. Particularly, HE and TCE had negative relationship with RGDP. This study applied 45 annually observed times series data sets and mainly fitted regression model to examine the relationship between public expenditure and economic growth in Nepal. The main policy implication of this study is that government and concern body should give more concern about capital expenditure for enhancing productive activities and attention about recurrent expenditure. Also, education, health, and transportation and communication are the economic infrastructure, so government should most attention to increase expenditure on these sectors that may produce long-run impact on economy.

Human capital is widely recognized as the fundamental basis for a nation's ability to maintain a high standard of living. This paper aims to evaluate Nepal's human capital and its impact on poverty reduction. The study utilizes time series data spanning from 1990 to 2021. To achieve the objectives of this research, the Johansen cointegration, vector error correction model (VECM), and Granger causality methods are employed. The overall findings reveal that human capital formation is particularly effective and significant in reducing poverty in Nepal in the short term. There is strong evidence indicating that investing in health is crucial for sustainable poverty reduction. However, education spending appears to have only a temporary effect on poverty alleviation in Nepal. Additionally, education demonstrates a positive association with gross fixed capital formation, employment, gross enrollment, and HDI, but not with health spending. It's important to note that this study covers a limited observation period of 32 years, and proxies for variables such as poverty reduction and human capital are constrained. Nevertheless, this research contributes by employing updated time-series data and aims to address the literature gap regarding the relationship between human capital and poverty reduction in Nepal. To effectively combat poverty in Nepal, the government should need to finance healthcare and education. Simultaneously, a policy emphasizing investment in both education and healthcare should be implemented, as this will contribute to fixed capital formation and enhance the quality of life through employment and income generation.

With the intent to fill the gaps in the empirical literature on foreign exchange reserve in Nepal, the paper aims to evaluate the empirical evidence of determinants of foreign exchange reserve in Nepal and to investigate the dynamic relationship among variables of interest using an autoregressive distributed lag (ARDL) error correction model and impulse response functions (IRFs) with 40 years of data from the period 1980-2020. The stylized facts of the employed model in the short run, reveal that the previous year's foreign exchange reserve itself, and all other predictors except gross fixed capital formation and official exchange rate (have negative) have a positive effect on foreign exchange reserve. The empirical evidence also insights that net flows of foreign direct investment, GDP per capita, inflation, and official exchange rate have positively influenced the foreign exchange reserve in long run. On the contrary, gross fixed capital formation has negative effects in long run. Moreover, anticipated crucial proxies––current account balance and trade are positively influenced but not significant. However, any impulse on the current account balance reports a significant response of foreign exchange. Thus, the central bank of Nepal and policymakers are needed to focus on the productivity of gross fixed capital formation or domestic investment to maintain the reserve adequacy and should give their attention to the current account balance (import and export) that can maintain the foreign exchange reserve and financial/economic stability and safety.

This study tried to analyze trends and structures of direct tax in Nepal with the adoption of descriptive method. This study, based on secondary data published by the Government of Nepal covering a fiscal year between 1999/00 to 2019/20, also examined the contribution of direct tax in gross domestic product of Nepal. During the study period, direct tax seemed to be fluctuating but increasing overall by 94.44%, while the percentage sharing of all taxes to the gross domestic product was increasing even though it was fluctuating from time to time. Total direct tax was found rising by 16%, on average, over the last 20 years. However, the income tax seemed contributing significantly to both direct tax and gross domestic product during the study period.