Nepal, June 3 -- The federal government's budget for the fiscal year 2020-21, presented by Finance Minister Yubaraj Khatiwada, prioritises short-term measures to respond to health, economic and employment crises caused by the novel coronavirus disease, Covid-19. The unique nature of concurrent health, demand and supply shocks due to the pandemic and the consequent lockdowns to contain its spread, meant that the government had no option but to increase spending in healthcare and social protection, even if it increased fiscal deficit sharply.

That said, this critical juncture is also an opportune moment to not only craft a short-term response to deal with the effect of Covid-19 on lives, livelihoods and the economy, but also to overhaul th...