News Digest - May 17, 2026

Politics & Governance

The federal government has restructured its Cabinet, reducing the number of ministries from 22 to 17 under revised Rules of Business Allocation, with changes to ministry portfolios to be published in the Nepal Gazette. The restructuring includes dissolving the Ministry of Youth and Sports to merge with the Ministry of Education and creating a new Ministry of Gender Equality and Social Development that integrates youth, women, and health portfolios. Federal government restructures Cabinet, reduces Ministries to 17

In budget execution, the government has spent about 60% of its annual allocation, but development spending remains low at 28% as of the end of the current fiscal year. Revenue collection reached 66% of the target while foreign aid received was about 33% of the planned amount. 60 per cent of the budget spent in 10 months, only 28 per cent of development expenditure

President Ram Chandra Paudel met UN Resident Coordinator Lila Pieters Yahia to discuss strengthening cooperation between Nepal and the United Nations. The meeting took place at Sheetal Niwas and focused on enhancing coordination going forward. UN Resident Coordinator Yahia calls on President Paudel

Courts & Accountability

A bank employee, Rishav Karki of Nepal Investment Mega Bank (NIMB), was sent to prison after being convicted for embezzling over NPR 16.5 million by transferring customer funds to his own account. The Tulsipur High Court had set a bail amount of NPR 5 million, which he could not pay, leading to his incarceration following an extended investigation. NIMB payer sent to jail for stealing more than Rs 15 crore

Following questions raised about former Home Minister Sudhan Gurung, a committee has been formed to investigate the allegations tied to his resignation. The committee is chaired by former Supreme Court Justice Achyut Prasad Bhandari and is expected to submit its report within 15 days. Sudhan Gurung to form committee to investigate Gurung

Economy & Business

Budget execution remains the main economic development, with total spending at about NPR 1.173 trillion against a planned NPR 19.64 trillion. Development expenditure is reported at NPR 134.9 billion from a budget of NPR 407.88 billion, suggesting delays in project-related spending. 60 per cent of the budget spent in 10 months, only 28 per cent of development expenditure

Financial accountability also featured through the sentencing of an NIMB employee for large-scale customer fund theft. The case outcome underscores the enforcement of fraud investigations and court processes related to banking misconduct. NIMB payer sent to jail for stealing more than Rs 15 crore

Society & Community

A fatal incident in Chitwan followed consumption of wild mushrooms, with one child dying and two others hospitalized after developing illness. The body of the deceased six-year-old was sent for a postmortem at Bharatpur Hospital. One dies, two taken ill after consuming wild mushroom in Chitwan

Public life in Kathmandu saw a cultural event that turned New Road into a festive space with traditional performances and local craft displays. Separately, enforcement efforts on road safety resulted in penalties for 2,029 motorists within 24 hours for traffic violations. Grand cultural event turns New Road festive 2,029 motorists penalized for breaching traffic regulations in 24 hrs

Weather updates indicated light rainfall across Koshi, Bagmati, and Gandaki provinces, alongside warnings about possible hail in Tarai regions of Madhes and Koshi. The Meteorological Forecasting Division also noted that thunderstorms and gusty winds are possible. Light rainfall likely in Koshi, Bagmati, and Gandaki Provinces

Menuka Shahi was elected as chairperson of the Bas Nepal Kathmandu branch during a recent meeting. Menuka Shahi appointed as the president of Bas Nepal Kathmandu branch

Date: May 17, 2026 (AD) | B.S.: Jestha 03, 2083

Top News

1. सिष्टममा छिरेर ग्राहकको डेढ करोड बढी रकम चोरी गर्ने एनआईएमबिका पियन कारागार चलान (arthasarokar.com)

An employee of Nepal Investment Mega Bank (NIMB), Rishav Karki, has been sentenced to prison for embezzling over NPR 16.5 million by transferring customer funds to his own account. The High Court in Tulsipur had set a bail amount of NPR 5 million, which Karki could not pay, leading to his incarceration. He was arrested in the first week of April after a lengthy investigation into the fraudulent transactions.

2. १० महिनामा ६० प्रतिशत बजेट खर्च, विकास खर्च २८ प्रतिशत मात्र (arthasarokar.com)

As of the end of the current fiscal year, the Nepalese government has spent approximately 60% of its annual budget, totaling NPR 1.173 trillion out of a planned NPR 19.64 trillion. Development expenditure stands at only 28%, with NPR 134.9 billion utilized from a budget of NPR 407.88 billion. Government revenue has reached 66% of its annual target, amounting to NPR 1.012 trillion against a goal of NPR 1.533 trillion, while foreign aid received is only 33.28% of the target, totaling NPR 17.78 billion.

3. सुधन गुरुङमाथि छानबिन गर्न समिति गठन, बन्लान् त फेरि गृहमन्त्री ? (arthasarokar.com)

A committee has been formed to investigate former Home Minister Sudhan Gurung following questions raised about him. The committee, chaired by former Supreme Court Justice Achyut Prasad Bhandari, includes Auditor General Shobhakant Paudel and Deputy Attorney General Achyutmani Neupane, and is tasked with submitting a report within 15 days. Gurung resigned from his position amid allegations of ties with controversial businessman Deepak Bhatt.

4. Light rainfall likely in Koshi, Bagmati, and Gandaki Provinces (theannapurnaexpress.com)

Light rainfall is expected in the Koshi, Bagmati, and Gandaki Provinces due to the influence of westerly and local winds, with potential thunderstorms and gusty winds forecasted. The Meteorological Forecasting Division has also warned of possible hail in the Tarai regions of Madhes and Koshi Province. Additionally, temperatures are anticipated to rise in parts of far-western and Lumbini provinces, while clear weather is expected in other areas.

5. One dies, two taken ill after consuming wild mushroom in Chitwan (theannapurnaexpress.com)

A six-year-old girl, Namuna Chepang, died after consuming wild mushrooms in Chitwan district, while two others, Sajan Chepang and Manita Chepang, fell ill and were hospitalized. The incident occurred after the family prepared a curry with the mushrooms on Tuesday evening. Namuna's body has been sent to Bharatpur Hospital for a postmortem.

6. Federal government restructures Cabinet, reduces Ministries to 17 (english.onlinekhabar.com)

The federal government has restructured its Cabinet, reducing the number of ministries from 22 to 17 through the revised Rules of Business Allocation. Key changes include the dissolution of the Ministry of Youth and Sports, which will merge with the Ministry of Education to form the Ministry of Education and Sports, and the creation of a new Ministry of Gender Equality and Social Development by integrating youth, women, and health portfolios. The changes will be officially published in the Nepal Gazette.

7. UN Resident Coordinator Yahia calls on President Paudel (theannapurnaexpress.com)

UN Resident Coordinator Lila Pieters Yahia met with President Ram Chandra Paudel to discuss enhancing cooperation between Nepal and the United Nations. The meeting took place at the President's Office, Sheetal Niwas.

8. Grand cultural event turns New Road festive (risingnepaldaily.com)

A grand cultural event transformed New Road into a vibrant festive atmosphere, showcasing various traditional performances and local crafts. The event aimed to promote cultural heritage and foster community engagement among residents and visitors.

9. 2,029 motorists penalized for breaching traffic regulations in 24 hrs (risingnepaldaily.com)

In a 24-hour period, 2,029 motorists were penalized for violating traffic regulations. This enforcement action highlights ongoing efforts to improve road safety and compliance with traffic laws.

10. बास नेपाल काठमाडौं  शाखाको अध्यक्षमा मेनुका शाही (www.onlinekhabar.com)

Menuka Shahi has been elected as the chairperson of the Bas Nepal Kathmandu branch. This decision was made during the branch's recent meeting.

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