- Saturday, 13 June 2026
Kathmandu, May 29: The government has allocated a budget of Rs 2124 billion 340 million for the upcoming fiscal year 2083/84 (2026/27).
Presenting the budget for the upcoming fiscal year during a joint meeting of the Federal Parliament earlier today, Finance Minister Dr Swarnim Wagle said that out of the total allocation, Rs 1270 billion 580 million, or 59.8 percent of the budget, has been allocated as current expenditure. Whereas, Rs 431 billion 100 million, or 20.3 percent has been allocated as capital expenditure.
Furthermore, Rs 422 billion 640 million, or 19.9 percent of the total allocation is for financial management. The expenditure estimate is about 25 percent higher than the revised estimate for the current fiscal year.
Of the total allocated budget, the government estimates to collect Rs 1405 billion from revenue and Rs 61 billion 740 million from foreign grants. Out of the deficit Rs 657.29 billion, Rs 247.28 billion will be mobilized from foreign loans and the remaining Rs 410 billion through internal loans.
As per the provisions related to fiscal transfer under the federal form of governance, Rs 61.5 billion will be disbursed to the provincial government and Rs 90.2 billion to the local levels in the coming fiscal year as equalization grant as recommended by the National Natural Resources and Fiscal Commission.
In addition, supplementary grants of Rs 4.6 billion and Rs 8.93 billion will be provided for the implementation of infrastructure projects at the provincial and local levels, respectively. Special grants of Rs 3.82 billion and Rs 9.40 billion have been allocated for the provincial and local levels, respectively.
Meanwhile, for the implementation of federal government projects, conditional grants of Rs 49.72 billion and Rs 206.8 billion will be distributed to the provincial and local levels, respectively.
A total of Rs 175 billion is expected to be transferred to the provinces and local levels through revenue sharing. The full text of the budget speech delivered by Finance Minister Wagle can be accessed in Nepali language at https://mof.gov.np/content/1741/budget-statement-for-the-financial-year-2083-84/.
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Goods, services worth Rs 88.22 billion exported in 10 months
Birgunj (Parsa), May 29: Goods and services worth amounting to Rs 88.22 billion were exported via Birgunj checkpoint in the first 10 months of the current fiscal year.
Public Information Officer at Birgunj Customs Office, Udaya Singh Bishta, told RSS that goods and services worth Rs 83.25 billion were exported during the corresponding period in the last fiscal year.
Refined soybean oil worth Rs 48.11 billion, refined sunflower oil worth Rs 5.35 billion and fruit juice worth Rs 6.42 billion were exported during the period.
Similarly, clothes worth Rs 3.03 billion and synthetic yarn worth Rs 2.25 billion were also exported via the check point.
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13- Number of cooperatives reaches 32,375; share capital worth Rs 143.29 billion- Economic Survey
Kathmandu, May 29: The Economic Survey of the fiscal year 2082/83 has stated that the number of cooperatives registered across the country as of mid-March 2026 reached 32,325.
In the cooperative sector, savings amounting to Rs 102.57 billion have been mobilised, while 82,216 people have received direct employment, stated the Economic Survey unveiled by the Ministry of Finance.
A total of 19,903 cooperatives have been affiliated with the Cooperative and Poverty-related Management Information System (COPOMIS), developed for integrated cooperative statistics, up to mid-March 2026.
As of mid-July 2024, 18,897 cooperatives were affiliated with COPOMIS, the Survey stated. The National Cooperative Regulatory Authority has regulated Nepal’s cooperative sector and issued operating licences to 834 cooperative organizations.
The federal government had declared 23 cooperatives among them as problematic and liquidated three. Remaining 20 cooperatives are yet to manage assets and settle liabilities.
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14- ‘Parliament is a major forum safeguarding democratic values, national welfare’
Kathmandu, May 29: Speaker Dol Prasad Aryal said the parliament is not only the place for making laws, but also a major forum for safeguarding democratic values, responsibility, and promoting dialogue, consensus and national welfare.
In a message of best wishes on the occasion of the 19th Republic Day, Speaker Aryal stressed the need of strengthening the parliamentary role towards enabling democracy.
“Good governance, corruption control and people-oriented development is possible only through robust democracy,” he argued, adding, “Today is the day marked in the history as an important achievement of Nepali people’s long political struggle, sacrifice, dedication and democratic aspirations.”
“The true meaning of democracy is directly related to positive changes in people’s living standard, guarantee of social justice, equal access of opportunities, economic prosperity and building an environment of dignified living,” reads the message.
Speaker Aryal argued the House of Representatives is fulfilling the important responsibility of addressing people’s sentiments, desire and national aspirations through policies, laws and parliamentary practices.
“I extend my wishes that the Republic Day should make all of us more committed, inspired and united towards shared national resolution of building a prosperous Nepal with national unity, democratic culture and social justice,” he stated.
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15- Cabinet approves budget for upcoming fiscal year
Kathmandu, May 29: The government has approved the annual budget for upcoming fiscal year 2083/84 BS.
A cabinet meeting held at the Office of the Prime Minster and Council of Ministers, Singha Durbar, today granted permission for the presentation of the budget at the Federal Parliament, said spokesperson of the government and Minister for Education and Sports, Sasmit Pokharel.
Finance Minister Dr Swarnim Wagle is to present the estimated income and expenditure for coming fiscal year in the joint session of both houses of the Federal Parlaiemnt at 4:00 pm.
There is a constitutional provision of presenting budget on Jeth 15.
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16- Budget presentation begins at federal parliament
Kathmandu, May 29: Presentation of budget for the upcoming fiscal year 2083-84 BS ( 2026-27) commenced in the joint meeting of the federal parliament- House of Representatives (HoR) and the National Assembly.
Finance Minister Dr Swarnim Wagle is presenting estimations of the government income and expenditure before the joint meeting of the federal parliament.
Prior to this, a Cabinet meeting held at the Office of the Prime Minister and Council of Ministers endorsed the budget speech. The budget for the current fiscal year is around Rs 1964.11 billion.
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17- CAVA volleyball: Nepal ends without a medal
Kathmandu, May 29: Host Nepal failed to win any medal in the ongoing Central Asian Volleyball Association (CAVA) women’s volleyball tournament underway in the capital.
Nepal ended without a medal after losing 3-1 to India in the match held for the third place of the tournament at the Covered Hall of the National Sports Council in Tripureshwar today.
India defeated Nepal in the first set by 25-22 and won the second set by 25-23. Similarly, Nepal won 25-15 in the third set of the match. In the fourth set of the match, India won 25-22 over Nepal.
With this victory, India secured the third position in the competition while Nepal remained in the fourth position. Earlier, in the semi-final held on Thursday, Nepal lost to Iran in a set of 3-0.
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18- Budget speech: 31 govt bodies to be scrapped, 18 to be restructured
Kathmandu, May 29: Finance Minister Dr Swarnim Wagle is presenting budget speech in the joint meeting of the federal parliaments.
Breaking the tradition of enclosing budget document in a briefcase, Dr Wagle appeared in the parliament with a Nepali paper-made notebook containing the budget document.
He informed that government would ensure automated increase of salary to civil servants and security officials. As per the budget speech, 31 government bodies would be scrapped and 18 others restructured. “A convincing atmosphere will be created for improving sovereign credit rating of Nepal,” he said, adding that a ‘matribhumi kosh’ (motherland fund) would be set up for establishing an AI factory.
Importantly, sun set laws would be in place to give a pace to development works. He expressed commitment to lift country out of grey list. Other schemes he shared are green energy bond, launch of lottery schemes to encourage practice of invoices in transaction.
The government, as the Minister shared, would scrap 360 sorts of excise duties.
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19- Budget 2026/27: Income tax exemption limit set at Rs 1 million
Kathmandu, May 29: The government has set a limit of Rs 1 million for individual taxpayers in budget estimates for the upcoming fiscal year. Reading out the budget estimates at the joint sitting of the federal parliament today, Finance Minister Dr Swarnim Wagle announced an overhaul of the tax system.
A comprehensive review has been made in the tax system to make the overall economy dynamic through the expansion of the middle class, he said.
Similarly, to encourage industrial production, he said that arrangements have been made to reduce customs duty on industrial raw materials by at least one level compared to readymade goods. Under this, customs duty has been reduced on 273 types of raw materials, and the existing 11-level customs structure has been restructured and limited to 7 levels, he said.
Furthermore, the excise duty currently levied on 360 items has been abolished. He informed that scattered taxes including infrastructure development tax, road maintenance and improvement fees collected at customs points have been integrated and included under ‘green tax’.
Provision has been made in the budget to make the value-added tax refund system fully automated.
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20- Budget will set standards for good governance: Finance Minister Wagle
Kathmandu, May 29: Finance Minister Dr Swarnim Wagle has expressed his hope that the budget for the upcoming fiscal year will set a standard for the good governance.
Commencing the budget speech for the fiscal year 2083-84 BS (2026-27) before a joint session of the Federal Parliament a while ago, the Minister said the upcoming budget will bring transformations in policies, laws, institutions, procedures and leadership, thus establishing the good governance.
“An end to policy indecisions, the culture of dilly-dallying, capture of institutions and exploitation of state resources and establishing result-oriented governance is the prime need of the hour,” the Minister said.
Stating that the nation is in the decisive juncture of comprehensive economic reforms, he said the budget is centered on massive reforms in economy and the establishment of good governance. As he said, the budget is primarily focused on production-based economy, good governance and technology-friendly development.
As he said, the public mandate to the incumbent government is considered as an extra-ordinary responsibility, he said the government is moving towards the direction of bringing transformation in the state’s characteristics, governance culture and the form of economy.
The Minister claimed that this time’s budget has been presented as a reliable document for policy transformations instead of limiting it as an official statement.
Information and communications, artificial intelligence, finance, trade, investment and collective capacity of Nepali community that spread across the globe have been presented as major bases for economic transformations. He said the government aims to build new structure for a coordinated economic growth through the proper utilization of new technology.
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21- Budget 2026/27: NEA to be restructured into three separate agencies
Kathmandu, May 29: The Government has decided to divide the scope of work of the state-owned Nepal Electricity Authority into three different agencies.
Reading out the budget estimates for the upcoming fiscal year 2026/2027 in the federal parliament today, Finance Minister Dr Swarnim Wagle said the NEA will be restructured into three separate companies for generation, transmission, distribution and trading of power in the country.
The NEA is currently a state monopoly, overseeing and regulating all aspects of power production, distribution and transaction in the country. The government has also decided to cancel the licenses of projects that have not been started construction despite a Power Purchase Agreement (PPA) and will conduct PPA on a new ‘take or pay’ model.
Similarly, PPA will be conducted immediately for power projects with a capacity of less than 10 megawatts and a legal arrangement will be made to allow the private sector to trade electricity in the international market.
To encourage the private sector in the development of large and reservoir-based projects, the government has put forward a policy that allows the promoter to sell up to 40 per cent of the shares to the general public in the first year if the promoter ensures 100 per cent investment for such projects.
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22- Budget 2026/27: High-level advisory committee to be formed to assess feasibility of multi-rate system in VAT
Kathmandu, May 29: The government plans to create a high-level advisory committee tasked with evaluating the applicability of a multi-rate system in VAT and provide recommendations accordingly.
Presenting the budget for the fiscal year 2026/27 at the joint session of the Federal Parliament today, Finance Minister Dr Swarnim Wagle announced significant reforms in the tax system, sharing that the approach of transforming tax administration from a punitive entity to a partner in development.
Furthermore, he noted that to foster a tax-payer-friendly environment, a special discount and concession scheme has been introduced to address long-standing tax disputes. In instances of tax disputes pending before the courts or other judicial entities involving the government or the taxpayer, if an additional one percent is added to the specified tax amount and submitted within the designated timeframe, the case will be dismissed, and all fees, fines, additional penalties, late fees, and interest will be waived.
Referring to the reduction of the number of federal ministries from 22 to 18, Dr Wagle said the resources saved from the reduction of such ministries, departments, offices, and positions will be allocated to improve administrative efficiency.
Under this new arrangement, 31 agencies will be dissolved, six agencies will be merged, six agencies will be relocated, and 18 agencies will undergo restructuring. With the objective of making the bureaucracy more efficient and accountable, the government has committed to continuously enhancing the benefits for civil, military, police, and teaching services in a dignified manner. According to the finance minister, it is estimated that this move will save Rs 20 billion.
The budget also prioritizes the control of general expenditure as a significant focus.
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23- Budget 2026/27: Nepal to be promoted as a destination for ‘wellness tourism’
Kathmandu, May 29: The government is going to promote Nepal as a destination for ‘wellness tourism’ in the international tourism market.
Presenting the annual estimates (budget) of revenue and expenditure for the fiscal year 2026/27 in the joint house of the federal parliament today, Finance Minister Dr Swarnim Wagle said that the government has given high priority to the development of the tourism sector. Accordingly, financial incentives will be given for the construction of luxury resorts and hotels to promote tourism.
He also mentioned that the Civil Aviation Authority of Nepal will be restructured within mid-January next year to improve Nepal’s position in the European Union’s aviation safety list. The CAAN will be divided into separate regulatory and licensing bodies.
The Finance Minister said that the Lumbini-Muktinath religious road, Shaligram road and meditation/yoga center will be developed. He mentioned that the government has set a goal to integrate yoga, meditation, spiritual practices as well as Buddhist and Vedic philosophy. This will help introduce the Himalayan cultural experience to the world.
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24- Budget 2026/27: Govt plans sovereign wealth fund by utilizing foreign currency reserve
Kathmandu, May 29: The government has forwarded a plan to set up a sovereign wealth fund by utilizing foreign currency reserve.
Presenting the budget for the upcoming fiscal year, 2026/27 in the joint meeting of the federal parliament today, Finance Minister Dr Swarnim Wagle said that artificial intelligence (AI), clean energy, digital infrastructures and financial sector reform were in government priority. A strategic plan is afoot to develop Nepal as a regional technical hub, he shared.
The climate fund would be utilized to the extent possible while diaspora bond and clean energy bond shall be issued, he said, adding that establishment of AI factory was another scheme.
In order to curb exchange risk associated with foreign loan or investment, a hedging service would be launched next year, according to him.
Utmost efforts would be made to lift Nepal out of grey list; favourable atmosphere would be created to improve credit sovereign credit rating. Moreover, the government is for increasing government fund in Rastriya Banijya Bank under the reform of corporation/authorities, while Nepal Airlines would be transformed into company and run in partnership model.
As per the budget speech, the government issue shares of Rastriya Jeevan Bima Company and Bishal Bazar Company to general public. Keeping 66 percent of its share to government, remaining shares would be sold to general public within mid-January next year. The amount generated from it would be spent to make Nepal a tech hub.
Foreign investment would be open for expansion of IT and a clear legal provision for remote work- from Nepal to the foreign companies. IT softwares to be used in government services will be purchased from the same agency, according to Minister Wagle.
The Finance Minister further announced that a fintech marketplace would be established under Nepal Rastra Bank’s supervision as part of digital public infrastructures. Dozens of government services would be linked to Nagarik App.
The budget further mentioned the establishment of sovereign AI compute centre for the first time in Nepal. With this numerous AI industrialists and startups would be provided computing at subsided rate by purchasing thousands of AI processing units.
Dr Wagle also annouced that at least 15 Nepali researchers working in internationally acclaimed AI companies would be provided fellowships in a bid to contribute to Nepal.
AI-related education including mathematics is accorded utmost priority by the government as the Minister shared through budget speech.
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25- Budget 2026/27: Quadrilateral development program on agriculture and industry in Mid-Madhes
Kathmandu, May 29: The government has given top priority to regional balanced development, agricultural revival, tourism promotion and investment-friendly environment through the budget of the next financial year.
Presenting the budget for the fiscal year 2026/27 at the joint meeting of the Federal Parliament today, Finance Minister Dr Swarnim Wagle has put forward the policy of developing rural and urban areas with high potential for economic growth as ‘Growth Pole’ and ‘Quad’. In the budget, arrangements have been made to develop the Mid-Madhes quadrangle focusing on agriculture and industry based on the area of 122,000 hectares that will be irrigated through the Sunkosi-Marin diversion irrigation project.
After completing the remaining works of postal and east-west highway expansion, the plan to develop the area as a centre of production and industrial activity has been put forward through the budget. It has been mentioned in the budget that tax incentives will be given to herbal, hydropower, tourism and mining activities by covering Mid-Hill Pushpalal Highway, Karnali Highway, Bheri Corridor and Rara-Jumla-Phoksundo area.
The Siddhartha Highway will be upgraded to develop the Kaligandaki Civilization Area as a pilgrimage and clean enterprise-focused ‘Gandaki Quadrilateral’.
A plan has been announced to build a ‘Shaligram Path (route)’ covering Trivenidham, Devghat, Rurukshetra, Kagbeni, Muktinath and Damodarkund. A new tourism route linking Lumbini-Muktinath religious and cultural route with meditation, yoga, Buddhist-Vedic philosophy and Himalayan cultural tourism has been announced in the budget.
The Finance Minister announced that the ‘Investment Express’ concept will be implemented to promote investment and the ‘Single Route System’ will be implemented within the next three months.
Company registration, tax, labor, visa application and other services will be integrated to provide easy services to investors. Projects approved by the Investment Board of Nepal need not be re-approved by other bodies.
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27- Budget 2026/27: Government sets priority to recovery of agricultural sector
Kathmandu, May 29: The government has accorded top priority to the recovery of the agricultural sector. Presenting the budget speech before the Federal Parliament today, Finance Minister Dr Swarnim Wagle announced that Rs 32.36 billion has been allocated for the procurement of chemical fertilizer.
Likewise, farmers will also receive electricity subsidies for the production of green urea. Another, Rs 2.4 million has been allocated to the control of foot-and-mouth disease in livestock. According to the Finance Minister, Rs 46.92 billion has been allocated for the agriculture and livestock development sector.
According to the new budget, farmers will receive grants up to 40 percent, along with a 10 percent annual grant. Special monitoring mechanism will be introduced to ensure the proper utilization of agricultural grants.
The agricultural sector will be further strengthened through the Agricultural Research and Development Centre. Similarly, the Agricultural Statistics System will be brought under the National Statistics Office.
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28- Budget 2026/27: Government increases civil servants’ salary
Kathmandu, May 29: The government has increased the monthly remuneration of civil servants.
Presenting the estimates of income and expenditure for the upcoming fiscal year at the joint meeting of the Federal Parliament today, Finance Minister Dr Swarnim Wagle said that the salary has been increased by up to 21 per cent including a 10 per cent rise in basic salary scale and another 10 per cent based on performance evaluation. As a result, the minimum salary of civil service now ranges from Rs 40,000 to a maximum of over Rs 100,000 monthly.
The salary has been increased by 10 percent in the starting scale while continuing the dearness allowance that the employees are currently receiving. Arrangements for a monthly incentive allowance of 10 percent of the new salary scale will be enforced to start the performance-based salary system, he said.
Minister Wagle said that the salary of civil servants had not been increased for the last four years, and the current rise in based on the Consumer Price Index, which has been 17.3 percent during this period.
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29- Budget 2026/27: Government aims to implement ‘Arsenic-Free Tarai Campaign’
Kathmandu, May 29: The government aims to launch the ‘Arsenic-Free Tarai Campaign’ from the upcoming fiscal year.
Presenting the government’s estimation of income and expenditure for the fiscal year 2083-84 BS (2026-27) before the Federal Parliament today, Finance Minister Dr Swarnim Wagle announced that from the upcoming fiscal, ‘arsenic-free Tarai campaign’ will be launched.
It has also been announced that deep-boring drinking water system development will be implemented at the community-level to address an acute shortage of drinking water primarily in dry season in the Tarai-Madhesh region from the upcoming fiscal.
According to him, Rs 2.5 billion has been allocated for concluding 280 incomplete water supplies projects in the Tarai-Madhesh. Similarly, as per the government’s announcements, feasibility study will be carried out for diverting water from Yangi and Larke Streams to Melamchi river. The expansion of water pipe network will be carried out in Kirtipur, Madhyapur Thimi, Jorpati, Pepsicola, Nagarjun and Mahalaxmisthan areas in Kathmandu Valley. For these works, Rs 7.26 billion has been allocated, the Minister said while presenting the budget.
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30- Budget 2026/27: Govt to run Pokhara and Gautam Buddha Int’l Airports in partnership with private sector
Kathmandu, May 29: The government has forwarded a plan to run two regional international airports- Pokhara and the Gautam Buddha- in partnership with the private sector.
In the budget announcement for the fiscal year, 2083/84 in joint meeting of the federal parliaments on Friday, Finance Minister Dr Swarnim Wagle said the both the regional international airports- Pokhara and of Gautam Buddha- would be run in full capacity by forging partnership with private sector.
For the upgrading of the Tribhuvan International Airport, government has allocated Rs 1.53 billion. A modality of the Nijgadh International Airport would be prepared within six months, while night flight would be conducted at Bharatpur Airport after its expansion.
The list of airports for upgrading is- Surkhet, Talcha and Tarigaon. Janakpur city would be branded as a ‘wedding destination’ and the route for circumambulation of Ramajanaki would be upgraded.
Broader infrastructures development would be forwarded in the historic and archaeological sites like Tilaurakot, Devdaha, Kapilvastu and Ramgram. For it, Rs 83 million has been allocated.
Minister Dr Wagle further informed that government would advance process to enlist Tilaurakot of Kapilvastu, Janakpurdham of Dhanusha and Gokarneshwor of Kathmandu in the World Heritage Site. The Minister further stated that a special project would be launched for the conservation of historical Buddhist monasteries of over 200-years old located in hilly and mountainous districts like Mustang and Manang.
A province tourism corridor ‘danfe route’ will be enforced by incorporating Khaptad, Badimalika, Rara and Swargadwari areas. The unnamed peaks of over 6,000 metres would be named and new trekking routes developed in the upper hilly region.
As per budget speech, the Indigenous Nationalities’ Museum of Kirtipur would be expanded; new homestays run in Dalit settlements of Madhes, Karnali and Sudurpaschim Provinces in order to promote original skills and arts of Dalit people.
The government is running high altitude sickness service, and has aimed at linking Ayurved and Yog to health tourism. The Ministry of Culture, Tourism and Civil Aviation has been allocated Rs 10.27 billion.
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31- Budget 2026/27: Soft power to be mobilized for economic diplomacy, prosperity
Kathmandu, May 29: The government is set to enhance its foreign relations by leveraging soft power to promote economic prosperity, as outlined in the Budget for the fiscal year 2026/27.
Finance Minister Dr Swarnim Wagle emphasized the importance of integrating economic diplomacy, cultural identity, technology, and tourism to bolster Nepal’s international presence and credibility. The government aims to strengthen its role in multilateral and regional forums, including the United Nations, while promoting active and balanced diplomacy to foster regional cooperation.
To expand Nepal’s soft power, the budget highlights the promotion of key cultural and natural assets, such as Lumbini, Mount Everest, and the country’s rich traditions in yoga and meditation. The government plans to enhance economic diplomacy to support Nepali missions abroad, increase export capacity, boost bilateral trade, attract foreign investment, and promote tourism.
Additionally, the budget proposes modifications to the provision of non-resident Nepali citizenship to better align with contemporary needs, reinforcing the concept of ‘Once a Nepali, forever a Nepali.’ This initiative aims to integrate non-resident Nepalis into national development by safeguarding their economic, social, and cultural rights.
The government also intends to streamline banking, investment, property management, and service delivery processes to effectively utilize the skills and resources of Nepalis living abroad for the country’s development.
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32- Budget 2026/27: Finance Minister tables copy of budget in National Assembly
Kathmandu, May 29: Finance Minister Dr Swarnim Wagle has tabled a copy of the annual revenue and expenditure (budget) statement for the fiscal year 2026/27 in the National Assembly.
The meeting of the National Assembly was then adjourned for the day to be held again is at 11:15 am on coming Sunday.
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33- Budget 2026/27: Embassies in Denmark, Brazil and South Africa to be shut down
Kathmandu, May 29: The government has decided to shut down Nepali embassies in Denmark, Brazil and South Africa.
Presenting the budget for the fiscal year 2026/27 at the joint meeting of the Federal Parliament today, Finance Minister Dr Swarnim Wagle announced the shutting down of the Nepali embassies in Denmark, Brazil and South Africa, as well as the Consulate General in Chengdu, San Francisco and the embassy branch in Visakhapatnam.
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34- ICT gets a budget of Rs 5.93 billion
Kathmandu, May 29: The government has allocated a total of Rs 5.093 billion for the information and communications sector for the upcoming fiscal year, prioritizing telecommunications, social media regulation, secure printing and public welfare advertisements.
In the budget (income and expenditure estimates) for the FY 2026/27 presented today, the government has announced structural reforms in the information and communications sector, expansion of digital infrastructure and increased access to communication services.
The government has announced that it will submit a bill related to the Telecommunications Authority to the parliament within the coming year to revise the regulatory structure of the telecommunications sector. According to the budget statement, access to quality telecommunications services will be expanded by accelerating the use of the latest technology. Priority has been given to quality telephone services and network expansion in Karnali and Sudurpaschim provinces, which are particularly affected by geographical remoteness and weak network problems.
Along with information and communication infrastructure, a restructuring of the government printing system has also been announced. The government plans to establish a security printing agency by integrating the government printing structures currently operating through various agencies.
The government has come up with a policy to encourage the expansion of commercial activities through registered social media platforms in Nepal. To strengthen the economy of the media, the government has allocated Rs 330 million for public welfare advertisements to be circulated through print and electronic media.
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35- 50 percent concession on custom duty for reconstruction materials
Kathmandu, May 29: The government has announced that it would slash custom duty on the materials to be used for reconstruction of infrastructures damaged during the Gen Z movement. Finance Minister Dr Swarnim Wagle made such announcement while presenting a budget for the fiscal year, 2083/84 in the joint meeting of the federal parliaments on Friday.
A special arrangement is in place for the reconstruction of the buildings damaged in fire and vandalism and installation of the equipment broken during the Gen Z movement occurred in September last year.
“Government has received a report of the insurance surveyors on the damages of buildings, furniture and equipment. So, the custom and excise duties for import of materials required for reconstruction and installation would be slashed by 50 percent,” said Minister Dr Wagle in the parliament meeting.
It will be applicable for industrial and trade houses. However, the star hotels which have already been entitled the discount on custom duty would not be provided double benefits.
As per budget announcement, the royalty and renewal fees for the casinos damaged during the Gen Z movement would also be provided concession.
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36- 7% economic growth expected with target to limit inflation at 6%
Kathmandu, May 29: The government has set a target of securing a seven-percent economic growth, limiting the inflation at six percent in the upcoming fiscal year.
Presenting the budget speech for the fiscal year, 2083-84 BS (2026-27) in the federal parliament on Friday, Finance Minister Dr Swarnim Wagle informed that economic transformation, structural reforms and restoration of the private sector’s confidence were accorded top priority in the budget.
Depicting the budget as a document with innovation and resolution for the state operation, the Minister said, “This has determined a take-off point for implementing a clear roadmap for an economic transformation and political commitments the government made before the citizens.”
The government has prioritised to prepare bases for food governance, productive employment, expansion of middle class, competitive economy and dignified livelihood, he claimed. Through the budget, the government attempts to redefine the State as an institution for creating opportunities by not confining it to its traditional roles as controller and regulator, the Minister said while presenting the budget.
Dr Wagle apprised the parliament that the government was initiating a new phase for structural reforms by streamlining energy, agriculture, forest, industry, tourism, information technology and human capital as major potentials for economic prosperity for the upcoming year.
Describing the private sector as a major partner of national economy, he said a base has been prepared for launching the economic cycle that creates investment-friendly atmosphere and promotes entrepreneurship and innovation.
He also promised IT-friendly, accountable and result-oriented public service delivery system and assured of making the administrative mechanism more accountable to the citizen. Towards the revenue management, the taxation system has been made simple, justifiable and productive. The budget pursues a policy of promoting frugality in the public expenditures, according to him.
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37- Health sector receives over Rs 100 billion budget for upcoming fiscal year
Kathmandu, May 29: The government has allocated the budget amounting to Rs 102.95 billion for the health sector in the upcoming fiscal year 2083-84 BS.
This has been stated in a budget speech that was presented by Finance Minister Dr Swarnim Wagle before the Federal Parliament on Friday.
As announced by the Finance Minister, Rs 15 billion has been allocated for the implementation of health insurance programme. Rs 13.15 billion has been allocated to for the indigent citizens’ treatment, safe motherhood programme
Likewise, telemedicine service will be expanded to rural areas including in Karnai and Sudurpaschim provinces. Special health services will be ensured through the ‘video consultation’.
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38- Budget aims to promote astronomical tourism
Kathmandu, May 29: The government has shared about its plan of establishing an ‘ observatory centre’ in the Sagarmatha (Mt Everest) Basecamp, aiming to promote the astronomical tourism.
Finance Minister Dr Swarnim Wagle shared about this plan while presenting the budget for the upcoming fiscal year 2083-84 BS (2025-26) before the Federal Parliament on Friday.
Similarly, the government has announced to establish the ‘Nepal Enterprise Facility’ to establish the National Enterprise Ecosystem so as to promote start-up and small and middle-scale enterprises.
Such platform is expected to make enterprise-related policy provision, identify and find access to new financial instruments and launch the incubation services and support network in an integrated way. It is also said to coordinate the domestic enterprise campaign.
The government has, through the budget speech, introduced a plan to provide start-up facilities to 1,000 youths interested in exploring potentialities in agriculture and livestock sector. This is expected to promote entrepreneurship in rural economy and to support jobs creations.
Similarly, through the budget, the government has announced to implement research, innovation and entrepreneurship programmes so as to open a lot of doors for youth scientists.
The government has allocated the budget amounting to Rs four billion for the science, technology and innovation while appropriating Rs 500 million for the establishment of Nepal Enterprise Facility. This initiative is expected to expand the start-up culture, foster research and build an economy based on innovation.
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39- Butwal-Pokhara road section to be upgraded as expressway
Gandaki, May 29: The government is going to upgrade the Butwal-Pokhara section of Siddhartha Highway as an expressway.
Finance Minister Dr Swarnim Wagle said this while presenting the budget for the fiscal year 2026/27 at the joint meeting of the Federal Parliament today.
He said that the ongoing work of Siddhababa Tunnel way will be completed within the next fiscal year. It is mentioned in the budget that construction of four-lane road from Anbukhaireni in Tanahun to Pokhara under Prithvi Highway will be completed soon.
Similarly, the construction of Mugling-Ambukhaireni section will be started soon. The 40 kilometers of road under Nagdhunga-Mugling section will be upgraded and Nagdhunga tunnel will be put into operation from coming July.
Finance Minister Wagle shared that Rs 6.55 billion has been allocated for these projects.
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40- Businesspersons hope dynamic economy thru budget
Birgunj, May 29: The businesspersons from Birgunj city and a major customs point hoped the budget released on Friday would make national economy dynamic.
Finance Minister Dr Swarnim Wagle unveiled the budget for the fiscal year, 2083/84 in the joint meeting of the federal parliament. In response to the budget, they traders said it would help promote businesses.
Chairperson of Birgunj Chamber of Commerce and Industries, Hari Prasad Gautam, informed that though the government brought a big size budget, it instilled hope in private sector. “The provision of separate slabs on import of raw materials for industry and readymade items will be a relief to the industrialists,” he said.
He however expressed wonder how the resources for the budget would managed as it is a huge budget this time. Various popular schemes are included and announcement made for various laws friendly to private sectors, which is positive. It has aimed at collecting over Rs 1400 billion in revenue, which seems challenging.
Senior Vice-Chairman of Birgunj Chamber of Commerce and Industries, Madhav Rajpal, also hoped the budget would spur economic activities. “It has created hope. Removal of excise duty and concession in import of raw materials for industries were private-sector friendly schemes,” he observed.
It is equally positive to broaden the net for individual income tax- one percent tax in the annual income of Rs 1 million.
Professor Dr Dipendra Kumar Chaudhari said although the budget seems encouraging, how government enforces it counts.
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41- Budget for fiscal year 2026/27: policy reforms in taxation
Hemant Joshi/RSS
Kathmandu, May 29: The government has introduced various plans and programmes of reforms in the revenue sector through the budget speech for the upcoming fiscal year 2083-84 BS (2026-27).
Presenting the government’s estimations of income and expenditures for the upcoming fiscal year before the Federal Parliament on Friday, Finance Minister Dr Swarnim Wagle announced comprehensive policy transformations, centering in the tax system, revenue transformations, customs reforms, investment encouragement and expansion of digital economy.
The budget presented with an aim of expanding economic affairs through enterprise-friendly tax policy, simpler and clear tax laws, voluntary tax participation and technology-friendly tax administration is expected to cause significant reforms in the revenue system.
During the budget speech, the Finance Minister said the government has pursued a policy of expanding a formal economy by connecting the entire economic activities to a digital system.
As per the announcement, the revenue collection will be increased though the promotion of voluntary tax participation by developing an automated, IT-friendly, and motivated tax administration. It has introduced a policy of mobilizing non-tax revenue on the basis of cost reimbursement and the ability to pay.
The government has announced to establish IT sector as ‘ nations’ new economic engine’, deciding to give a 50-percent tax discount on income generated from the experts of IT-related services.
Similarly, the budget statement has introduced a provision to grant a 100 percent tax exemption on the “sweat equity” income received by human resources working in the information technology sector while calculating taxable income. This announcement has been considered as an effort to attract startups, innovation, and technology-based enterprises.
For the promotion of domestic production, it has been announced to implement the ‘domestic product promotion fee’ on some of good produced within the country.
Likewise, income tax has been exempted in the interests generated from loan investment in Nepal by non-profitable development finance organisations on the full ownership of neighbouring nations.
The government has announced to review the sensitive list under the South Asian Free Trade Area ( SAFTA), indicating a change in the government’s trade policy.
An equity fee on a minimum rate will be implemented in the private education and health services, encouraging infrastructure development and service expansion in the rural areas.
In the energy sector, a provision has been introduced to implement Value Added Tax (VAT) at a concessional rate on electricity consumption exceeding 50 units per month sold to end consumers.
The customs duty currently levied on electric vehicles based on ‘peak power’ capacity will now be determined on a value basis. In addition, a ‘clean infrastructure investment fee’ will be levied for the domestic production of electric vehicles, construction of charging stations and battery management.
To promote the export of Nepali brand alcohol, ‘good spirit’ production and ‘maturation’ process will be encouraged in the liquor industry. Micro breweries will be registered as liquor industries and brought under the scope of excise duty from the coming fiscal year.
Tax on tobacco products has been increased by about 10 percent while excise duty has been increased on alcohol and beer.
The government has announced major structural changes towards revenue administration reform. It is stated that the Revenue Investigation Department will be scrapped. All businesses with an annual turnover of more than Rs 100 million and issuing e-invoices will be linked to the Central Invoice Monitoring System. Small business owners will be encouraged to receive payments through digital means.
Announcing the creation of a ‘paperless, faceless and contactless’ revenue administration, Finance Minister Dr Wagle said that services including tax return submission, payment, and withdrawal will be fully automated.
In order to control the multi-tax system seen at the local level, the budget has made provision to eliminate multiple taxes, including export duties and customs duties, imposed by various local levels while transporting goods from one place to another. Permanent Account Number (PAN) will be made mandatory when paying taxes at the provincial and local levels.
The government is to introduce the concept of ‘Authorized Business Person’ for trade facilitation. Under this, qualified businesspersons will get fast clearance facilities through the ‘Blue Lane’ at customs.
Towards tourism facilitation, the budget has made provision to allow tourists entering Nepal by land to declare temporary entry of vehicles and pay fees online from all main customs offices. It is stated that the deposit system for goods brought for wedding purposes will be automated to promote matrimonial tourism, and it will be easy for tourists to bring foreign currency within the limits prescribed by law.
The agro-processing industry will be given full income tax exemption for the first 10 years, while value-added tax exemption will be provided on the import of ‘cold storage’, ‘packaging and testing lab machinery’ equipment.
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