Keshav Acharya: The Economist Behind Nepal’s Senior Citizen Allowance and ‘Build Our Own Village’ Policies

March 22, Kathmandu – Renowned Nepali economist Keshav Acharya passed away on Monday. Acharya was widely recognized for his ability to translate complex economic issues into accessible language for the general public.

Perhaps most significant among his contributions were two major policies designed by him and his team, which have left a lasting impact on Nepal’s economy and the lives of its people.

In 1995, when the Communist Party of Nepal (Unified Marxist-Leninist) formed a short-lived nine-month minority government, three leading economists were at the forefront of shaping the government’s economic policies—Dr. Dilliraj Khanal, Keshav Acharya, and Dr. Govind Bahadur Thapa. Under Prime Minister Manmohan Adhikari and Finance Minister Bharat Mohan Adhikari, the government launched the policy of directly transferring budgets to local bodies under the slogan “Build Our Own Village.”

This government also initiated the provision of senior citizen allowances to citizens over the age of 75. Acharya, who was part of the Ministry of Finance specialist team from the beginning, played a crucial role in formulating these policies, according to Dr. Khanal, then a member of the National Planning Commission and Chief Economic Advisor at the Ministry.

“I was initially the Chief Economic Advisor of the ministry, and after moving to the National Planning Commission, Keshav Ji took that position. At that time, we worked together to develop the budget and introduce these policies,” Khanal recalled.

Dr. Khanal also reminisces that the team prepared a long-term vision for the government. Acharya assisted in policy formulation while working at Nepal Rastra Bank.

Acharya devoted more than three decades to Nepal Rastra Bank. Born on November 17, 1896 BS (December 1, 1939 AD) in Bohoretar, Sindhuli, he entered government service in 1977 BS after passing open competitive exams to become an officer at the central bank. Most of his career was spent at the bank’s Economic Research Department. He was appointed Executive Director in 2001 and retired from the central bank in 2009.

Acharya earned his postgraduate degree in economics from Tribhuvan University and the University of the Philippines, and completed an MSc in Finance in the UK.

He spent much of his time in the research department, which was regarded as the most prestigious division within Nepal Rastra Bank. “He did work in other departments occasionally, but mostly remained in research,” said his colleague and former governor Deependra Bahadur Kshetri.

Acharya was among the few bank employees who were transferred outside the Kathmandu valley, as the bank deemed his expertise essential at the central office, which he confirmed.

Kshetri noted Acharya’s habit of staying up-to-date with cutting-edge global economic information and bringing important issues to discussions at the bank.

Beyond Nepal Rastra Bank, Acharya contributed significantly as a chief economic advisor to the government and as an advisor to the International Monetary Fund. He also co-authored the aggregate chapter on long-term agricultural development strategies.

“He was part of the core economist team in the UML government’s first tenure, and played a major role in implementing two important policies—the senior citizen allowance and the ‘Build Our Own Village’ program,” Kshetri said.

Acharya was widely respected not only for his strong grasp of economics but also for his personable and humble nature.

“Although he was part of the UML government’s economic expert team, he was not a committed political activist,” Kshetri noted.

After 2009, Acharya served as the chief economic advisor under Finance Minister Surendra Pandey and Prime Minister Madhav Kumar Nepal. Pandey remembers him less as a politically partisan figure and more as a pragmatic economist.

“Perhaps due to his interest in progressive movements since college, he worked as an expert during the UML government but was not an active party member,” Pandey said. “As a senior official from Nepal Rastra Bank, involvement in party organization was not feasible.”

Despite advising communist governments repeatedly, Acharya consistently advanced an agenda of economic reform.

Pandey recalled that Acharya never engaged in political controversies during his work. “Many people talk a lot about ideology but fail to deliver results, but he was an economist who translated principles into policy and implementation,” Pandey said.

His hallmark was honest and strategic economic advice, and he provided excellent support for the implementation of the plans he proposed, according to Pandey.

Acharya was college classmates with former Chief Secretary Dr. Womol Koirala.

“We studied together at Mahendra Morang Campus in Biratnagar; he was 15 and I was 13. He studied arts, and I took science. Our friendship has continued ever since,” Dr. Koirala shared.

Koirala describes Acharya as a sharp, precise, diligent economist with a progressive mindset. “He had no negative feelings; he always sought solutions for improvement and development,” he emphasized. “After the overwhelming majority of Raswapas (Rastriya Swatantra Party), Acharya believed that the new government could deliver the reforms that the people expected.”

Acharya’s scholarly pursuits extended beyond economics to literature as well.

After working for about 18 months in the Ministry of Finance, he took part in advocating for economic policy. He contributed articles to various research and media outlets and during his tenure at Nepal Rastra Bank, he regularly provided economic insights to journalists and encouraged simplified writing.

In 2014 BS (2017 AD), he was a member of the High-Level Tax System Review Commission. Acharya was also chairman of Laxmi Laghubitta Bittiya Sanstha, a microfinance institution established in 2012 BS, leading it until 2021 BS.

In recent years, he worked with the Economic Policy Incubator supported by UKAid.

Dr. Shankar Sharma, team leader and current Nepali ambassador to India, recalled Acharya as a forthright and dedicated professional. “He had a cheerful presence in the office; without him, the workplace felt empty,” Dr. Sharma said.

He never allowed political bias to influence his work, Dr. Sharma remembered.

“Initially, he might have leaned left politically, but he worked under both Manmohan Adhikari and Madhav Nepal governments. Later, he emphasized reform, remaining steadfast that the government must serve the people. He contributed significantly to reforms in many economic laws,” Dr. Sharma added.