Explainer: What is ordinance?

On January 13, the federal government forwarded five ordinances (अध्यादेश) to the President for endorsement as neither of the two houses was in session.

KP Sharma Oli-led council of ministers recommended President Ramchandra Paudel issuance of five ordinances, which were related to amending several Acts and 27 of their laws — 

1. Ordinance to amend Some Nepal Acts related to Governance and Public Service Delivery, 2025
2. Ordinance to amend Financial Procedures and Fiscal Responsibility (First Amendment), 2025
3. Ordinance to amend Privatisation (First Amendment), 2025
4. Ordinance to amend Nepal Acts related to Economic Environment and Investment Promotion, 2025
5. Ordinance to amend Some Nepal Acts related to Land, 2025

The President issued the first four ordinances Monday, while withholding the fifth citing need for further scrutiny due to conflicting provisions.

Prime Minister Oli said Wednesday that the government would convene the winter session of the Parliament as soon as the President issued the fifth ordinance. Later that evening, the President issued the fifth ordinance as well.

In the parliamentary political system, ordinance is the executive order issued by the government when the legislature is not in function. In ideal practice, the legislature has not been in session, and in rare cases has been dissolved.

Also known as provisionary law that the executive enacts to cater its legal requirements, basing upon which it addresses urgent matters.

In parliamentary democracies like Nepal however, the executive whimsically trying to bypass the elected legislature (check and balance) and asserting their dominance over lawmaking makes ordinance viewed as an authoritative order or decree.

The Constitution of Nepal (2015) has provisions relating to ordinance in Article 114 under Part 9 that deals with federal legislative procedures.

Article 114 (1) provides that the Council of Ministers can recommend the President to promulgate an ordinance that they deem necessary.

It states, “If, at any time, except when both Houses of the Federal Parliament are in session, circumstances exist which render it necessary to take immediate action, the President may, on recommendation of the Council of Ministers, promulgate an Ordinance.”

However, whether to promulgate or sit on the ordinance is the President’s constitutional prerogative.

Article 114 (2) guarantees that an ordinance has the same force and effect as the Parliament-formulated act. 

Its sub clause (a) requires that the ordinance be tabled at the following session of both Houses and if not passed by both Houses, it becomes ipso facto null and void.

Sub clause (b) extends the power to the President to scrap the ordinance at any time.

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And sub clause (c) provides that the ordinance will automatically cease to be effective “at the expiration of sixty days after the day on which a meeting of both Houses is held,” further clarifying if both Houses meet on different dates, the later date shall prevail.

The Constitution has the exact provisions for the provinces, as provided in Article 202 under Part 15 — State Legislative Procedures. The only difference is the State Assembly is unicameral in the provinces while bicameral in the federal parliament.

Meanwhile, governments, whether federal or provincial, cascading into minority following political fiasco often introduce their annual budget through ordinance. For instance, in fiscal year 2023/24, the CPN (Maoist Centre)-led federal government and the UML-led Koshi government brought their annual budget through ordinances.

Similarly, governments also amend their budget calendar, revising their priorities, through ordinance. For instance, the UML-led federal government did through the Ordinance to amend Financial Procedures and Fiscal Responsibility (First Amendment), 2025.

Both should ideally be carried out as bills passed through their respective Houses to come into effect. However, to keep the government current accounts running they do so deeming it necessary.