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Finance Minister Dr Swarnim Wagle is presenting the budget for the fiscal year 2083/84 in a joint meeting of the Federal Parliament.

Finance Minister Wagle is presenting the budget approved by the Council of Ministers in a joint meeting of Parliament.

Finance Minister Dr Swarnim Wagle is presenting the Executive Budget Proposal for the upcoming fiscal year, 2083/84 in the joint meeting of the Federal Parliament today. 

As per the constitutional provision of unveiling the national budget in the Parliament on Jestha 15, the estimates of annual income and expenditure of the government are to be presented in the joint session this afternoon. 

Laying emphasis on revitalizing the economy, boosting up confidence of the private sector, increasing capital spending and expanding employment opportunities, the government is preparing to unveil the budget presumably from Rs 1890 to Rs 2000 billion, a senior official at the Finance Minster stated. 

The  budget would focus on promoting good governance and economic revitalization. 

It may be noted that the National Planning Commission had set the budget ceiling of Rs 1890 billion for the upcoming fiscal year. 

Considering difficulty to prepare the budget within the limits set by the NPC, the National Revenue Estimates Committee had increased the ceiling upon the government's request for review. 

It is reported that the budget was prepared based on the government's 100-point action plan for governance reform, government policies and programmes, and the priorities and principles of the Appropriation Bill presented in parliament. 

It is stated that inputs and deliberations made by lawmakers in both Houses of the Federal Parliament, the government's good governance roadmap, economic reforms, production boost and service delivery were placed at the centre of the budget. 

Discussions indicate that the budget will include an increase in the government employee salary, review of some tax rates, industry-business-friendly policies, and programmes to encourage productive sectors. 

Priority has been given to information technology, small and medium enterprises, and investment promotion, it is shared. 

The Federal Parliament Secretariat has said that it completed preparation for the budget announcement in the joint meeting of the House of Representatives (HoR) and the National Assembly (NA) for the upcoming fiscal year, 2083/84 on Friday.

The meeting for the budget presentation has been called for 4 pm in the multi-purpose Parliament building of Singha Durbar where the HoR meetings are held. The building is still under-construction.

Finance Minister Dr Swarnim Wagle is scheduled to announce the budget.

The Parliament Secretariat has already informed the HoR and NA members to be present in the meeting hall 15 minutes before the business starts.

Spokesperson at Parliament Secretariat, Ekram Giri, informed that even the officials of constitutional bodies, high level government officials and chiefs and representatives of diplomatic missions in Nepal were invited to attend the budget meeting.

Finance Minister Dr Swarnim Wagle has said that the upcoming fiscal year budget would lay special focus on the excluded areas, including Sudurpaschim and Karnali. 

Responding to the queries raised by lawmakers in the discussion on the principles and priorities of the Appropriation Bill (excluding tax proposal) for the fiscal year 2083/84, the Finance Minister asserted that the middle class would be expanded by uplifting the weaker class. 

Noting that he was clear on the assumption that implementation of development projects would be smooth only with adoption of a clear roadmap, Finance Minister Dr Wagle said that the 'mission mode' has been put in practice for the first time. 

He mentioned that the principles and priorities of the Appropriation Bill would not only reflect the government's perspective but also clarify that honest efforts must be made for implementation.

Nepal Rastra Bank (NRB) today submitted a full-term budget review report of the budget for the upcoming fiscal year 2083-84 BS (2026/2027) to the government.

NRB Governor Dr Biswo Nath Poudel today called on Finance Minister Dr Swarnim Wagle and presented him the document. 

In accordance with the Nepal Rastra Bank Act, 2058 BS, the central bank shall submit a report to the government about the country's economic and financial situation for the purpose of formulating the government's annual budget. 

Finance Minister Dr Swarnim Wagle has stated that the government intends to present a budget that inspires hope. 

During his speech at the opening ceremony of the 60th Annual General Meeting of the FNCCI, Minister Wagle committed to fostering hope for the forthcoming fiscal year and positioning the private sector as a key driver of development. 

He emphasized the significance of the private sector in promoting economic growth, generating employment, and expanding investments. 

Minister Wagle disclosed that a strategic proposal aimed at safeguarding and enhancing the private sector has been submitted to the Cabinet. 

He noted that to realize the long-term objective of establishing an economy valued at approximately 100 billion dollars, the private sector will be essential. "The resources of the government are limited, yet private sector investment is crucial for economic expansion," he remarked. 

He pointed out that government spending constitutes only about 25 to 30 percent of the GDP, indicating that the remaining economic activities are predominantly managed by the private sector. 

"The initiative to repeal around two dozen laws that have obstructed economic advancement is underway," Minister Wagle stated, adding, "Furthermore, the tax system will be reformed to be more favorable to enterprises and investments by enhancing revenue administration." 

Minister Wagle affirmed that the government will implement policies aligned with the principles of a social market economy. 

He clarified that equitable income distribution will be achieved through education, healthcare, transportation, and social security, while simultaneously promoting innovation and mobility within the private sector.

The National Planning Commission (NPC) and the government ministries are engaged in preliminary discussions about the upcoming budget, focusing on ensuring sufficient budget allocation for the completion of underway projects as soon as possible.

Similarly, the discussions focused on proposing new plans and programs that have already undergone prior preparation, including cost–benefit analysis, and are ready for prompt implementation.

The Commission has prepared a checklist aimed at making the budget formulation process for the upcoming fiscal year 2083–84 BS (2026–27) more disciplined, results-oriented, and realistic.

The Commission is discussing with the Office of the Prime Minister and Council of Ministers, and the Ministries of Federal Affairs and General Administration; Culture, Tourism and Civil Aviation; and Health and Population today, according to Commission Assistant Spokesperson Dr Diwakar Luintel.

On Wednesday, discussions will be held with the Ministries of Forests and Environment; Labour, Employment and Social Security; Physical Infrastructure and Transport; and Urban Development.

Similarly, the current status of national pride projects and major programs included in the project bank should be clearly mentioned. It is expected that it would facilitate in progress evaluation of projects of long-term importance. 

The government has also emphasized on aligning the budget with the 16th plan. As per this, the ministries have to clearly propose transformational strategies and key programs and projects to be implemented in the coming fiscal year.

The ministries would have to submit proposals with realistic projections of resources and expenditure as per the budget ceiling and medium-term expenditure structure for next three years (2083/84-2085/86) provided by the Finance Ministry. 

In accordance with Financial Procedures and Financial Responsibility Act, 2076, details like the feasibility study, environmental assessment study, detailed project report, design, cost estimation, land acquisition situation, implementation schedule and purchase plan should be mandatorily included in the proposed plans.  

Similarly, arrangements have been made where expected outcome from the projects should be clearly mentioned. The details of guarantee of resources for national pride projects and multi-year projects should be compulsorily submitted. It is believed that it would increase transparency of budget commitment. 

The government has adopted a policy to give special priority to the projects that will yield quick return, can be completed on slated time and cost and will be completed in the next fiscal year. 

Projects that should be restructured or reviewed along with the details of incomplete and sick projects should be presented separately.  

Likewise, it is mandatory to disclose whether or not the financial liabilities created by previously completed projects are included in the budget.  

Earlier, the Finance Ministry had given March 29 as a deadline to propose plans and programs for the budget of the coming fiscal year, but it has extended the deadline, citing lack of homework.

"We had asked to enter the proposed plans and programs into Line Ministry Budget Information System (LMBIS) by March 29. But, the Finance Ministry will be flexible on it," Joint-Spokesperson of the Commission, Luintel. 

It is necessary to extend the deadline for proposing the plans and programmes into LMBIS in order to incorporate the provisions mentioned in the 100-point reform program, Good Governance Blueprint, 2082, election manifesto of the ruling party in the  budget, added the Finance Ministry.

The government has projected the country's economic growth rate to be limited to 3.5 percent. 

This projection was made in the mid-year review of the current fiscal year's budget. 

The annual growth rate of the gross domestic product (GDP) for the current year was estimated to be six percent.

However, due to the decrease in rice production, area and productivity, slowdown in the construction sector, and decline in real estate and land transactions, among other reasons, a new projection has been published in the mid-year review, indicating that the economic growth rate will shrink to 3.5 percent.

Last fiscal year's total GDP growth rate is estimated to be 4.6 percent.

As per the mid-year evaluation report of the budget, the preliminary estimate shows that the GDP at basic prices increased by three percent in the first quarter of the current fiscal year. The revised estimate suggests that the GDP at basic prices increased by 2.9 percent in the same period of the previous fiscal year.

It is estimated that the total value addition of the agricultural sector in the first quarter of the current fiscal year will expand by 1.36 percent compared to the same period of the previous fiscal year.

Particularly, based on the expectation of a decrease in rice production and an increase in livestock, vegetable, and fruit production, the growth rate of the value addition to the agricultural sector is expected to be relatively low.

In the current fiscal year, the production of food crops such as maize, millet, and buckwheat is expected to increase. In the previous fiscal year, the production of food crops like paddy, wheat, and maize is estimated to have increased by 2.67 percent and the production of cash crops by 2.01 percent.

The total value addition of the industrial sector is expected to increase by 5.44 percent in the first quarter of the current fiscal year compared to the same period of the previous year. The expansion of activities in the energy and construction sectors in the current fiscal year is expected to have a positive impact on the overall industrial sector.

In the first quarter of the current fiscal year, the total value addition of the production-based industries is expected to grow by 1.52 percent. During the same period, the total value addition of the service sector is expected to increase by 3.03 percent compared to the same period of the previous fiscal year.

It is estimated that the expansion in wholesale and retail trade, financial intermediation, general administration and defence, tourism activities, and personal services will have a positive impact on the overall service sector in the current fiscal year.

According to the mid-year budget review report, the average inflation for the first six months of the current fiscal year is 1.7 percent. In the same period last year, inflation was 4.97 percent.

Both the revenue and expenditure of the government has appeared weak in the mid-term review of the current fiscal year budget. 

According to the Financial Comptroller General Office (FCGO), the government's revenue has shrunk to 38 percent and spending to 35 percent against the annual target as of mid-January. 

For the current fiscal year, the government had proposed a budget of Rs 1,964 billion 110 million. 

By the end of Poush (mid-January), Rs 690 billion 216.4 million had been spent, which comes to 35.14 percent of the annual target. 

The budget expenditure under the current headings for the reporting period is 41.25 percent of the annual target. 

Out of Rs 1,181 billion allocated for current headings, Rs 487 billion 143.1 million has been spent so far. 

The capital expenditure has been reduced to 12.12 percent. 

For the current fiscal year, recurrent budget of Rs 407 billion 888 million was proposed, but only Rs 494.2 million has been spent so far. 

Similarly, under the financial management heading, Rs 375 billion 242 million was allocated for the current fiscal year, and by mid-January 2026 Rs 153 billion 644.9 million has been spent. 

This expenditure constitutes 40.95 percent of the annual allocation for this heading. 

This year the government has set a target of generating total revenue of Rs 1533 billion 446.9 million. 

As of mid-January this year, the revenue generated was only Rs 588 billion 514.2 million which comes to 38.38 percent of the annual target. 

British finance minister Rachel Reeves announced a big tax-raising budget on Wednesday that will take more money from workers, people saving for a pension and investors to give herself greater room to meet her deficit-reduction targets, Reuters reported.

Britain's fiscal watchdog cut its forecasts for economic growth for the coming years - a setback for struggling Prime Minister Keir Starmer who promised voters last year he would speed up the economy.

But the Office for Budget Responsibility (OBR) said the government will now have more than double its previous buffer for meeting its fiscal targets, something closely watched by investors assessing Britain's borrowing risks, according to Reuters.

The Ministry of Finance has formed a three-member taskforce to find budget resources for the reconstruction of physical structures damaged during the Gen Z movement and for the upcoming House of Representatives election scheduled for March 5, 2026.

The taskforce comprises head of the Budget and Program Division, Suman Dahal, the head of the Foreign Aid Coordination Division, Dhaniram Sharma, and the head of the Revenue Management Division, Uttar Kumar Khatri.

Spokesperson of the Ministry of Finance, Tanka Prasad Pandey, said the taskforce has been formed to conduct an internal study on how to manage resources by cutting some plans and programs included in the current budget.

"The budget is needed for the election and reconstruction. A taskforce has been formed to study how to manage within the current budget the resources needed for the elections and reconstruction, and to identify potential areas," spokesperson Pandey said.

According to him, some projects and programs in the budget will have to be slashed. The taskforce has the mandate to determine the priorities for that purpose.

On Monday, newly appointed Finance Minister Rameshwar Prasad Khanal, while assuming office, stated that plans and programs that have been included in the budget through political pressure, those plans and programs inadequately prepared, and fragmented plans and programs in the budget for the current fiscal year 2082/83 would be cut.

The finance minister had stated that the government could raise about 100 billion rupees for elections and reconstruction through cuts in the plans and programs included in the current budget, without bringing in a supplementary budget.

Japan's deepening political uncertainty risks prolonging policy paralysis that could affect the drafting of next year's budget and the timing of the central bank's next interest rate hike, analysts say, clouding the outlook for the fragile economy, Reuters reported.

Prime Minister Shigeru Ishiba is facing increased calls from within his ruling Liberal Democratic Party (LDP) to step down and take responsibility for the party's huge defeat in an upper house election in July and a lower house poll last year.

While Ishiba has denied he has any plans to resign, his fading support has triggered inevitable questions about his political future and analysts say a leadership change would likely have implications for the outlook for fiscal and monetary policy, according to Reuters.

The Karnali government has tightened the budget implementation process for the current fiscal year to ensure greater transparency, accountability, and results. The provincial government has issued 27-point budget implementation guidelines to all 79 local governments in Karnali, covering intergovernmental financial transfers, revenue sharing, project and program implementation, as well as accounting, reporting, and auditing.

According to Ravilal Sharma, Secretary at the Ministry of Economic Affairs and Planning, one-fourth of the financial equalization grant will be released in four installments—in August, October, January, and April. The guidelines allow the provincial government to reduce, withhold, or control transfers depending on the province’s economic situation, revenue status, grants received from the federal government, and the balance of the provincial consolidated fund.

The Ministry of Economic Affairs may request financial and physical progress reports for projects and programs funded through provincial transfers. Local governments that fail to provide the required reports risk having their grants withheld. Conditional, supplementary, and special grants must be used solely for the designated project or program and cannot be diverted elsewhere.

Under the guidelines, 60 percent of revenue from advertisement taxes, tourism fees, and natural resources such as stone, gravel, and sand must be retained by the local government, while the remaining 40 percent must be deposited monthly into the provincial consolidated fund. Failure to do so will result in deductions from the local government’s financial equalization grant. Similarly, the provincial government will transfer 40 percent of vehicle tax revenue to local consolidated funds, in accordance with the National Natural Resources and Finance Commission’s determination.

The guidelines also set conditions for program and project implementation. If a local government wishes to amend a conditional grant-funded project, it must request approval from the provincial government with a clear justification, ensuring that neither the subject area nor the budget changes. Such amendments can be made only until mid-Dec 2025. Furthermore, political party office bearers, elected representatives, their family members, construction entrepreneurs, and civil servants are barred from serving on consumer committees. Projects assigned to consumer committees cannot be implemented—directly or indirectly—through construction entrepreneurs.

All local governments in Karnali must submit income and expenditure reports for fiscal year 2024/25 to the provincial accounting unit in the prescribed format by mid-July. Failure to do so will result in suspension of revenue distribution and grants for the fiscal year. The provincial government has also directed that information boards be installed for every project and program.

The Ministry of Finance has formed a taskforce for the formulation of a law to help improve budget discipline in the country. 

Chief of Fiscal Federalism Coordination Division under the Ministry of Finance, Mahesh Baral has been assigned the coordinator of the taskforce, said the Secretariat of the Minister of Finance. 

Other members in the taskforce include Under Secretary in the MoF Budget Formulation Division, Under Secretary in the Legal and Judgement Execution Division and former Joint Secretary Nirmal Hari Adhiakri as a theme expert while Under Secretary of the Fiscal Federalism Division has been entrusted as member-secretary of the taskforce. 

It may be noted that point number 359 of the budget speech of the current fiscal year has stated to maintain allocation efficiency and increase efficiency of public financial management, enhance the outcomes of public spending through budget discipline and consolidate cash flow management for maintaining balance in the Federal Reserve Fund. 

Likewise, it has also specified provisions to utilize the public borrowing in the productive sector in a sustainable manner, and execute the public financial management strategy. 

The point number 371 of the budget speech has mentioned about the formulation of a law to consolidate budget discipline at federal, provincial and local levels as per the constitution. 

The MoF has formed a taskforce to implement the arrangements specified in the budget speech.

The Kathmandu Metropolitan City has unveiled the new budget of Rs 25.76 billion for the upcoming fiscal year 2025/26.. 

Deputy Mayor of Kathmandu Metropolitan City Sunita Dangol tabled the budget in the 17th convention of the municipal assembly on Sunday. 

Of the total budget of the metropolitan city for the new fiscal year, Rs 20.12 billion would be covered from the internal resources of the metropolitan city and bank deposits.

Likewise, almost Rs 5 billion would be received from the federal and province governments as the conditional and equalization grants and revenue sharing.  

As stated in the budget, the Kathmandu Metropolitan City would identify new taxpayers to make the revenue collection effective in the upcoming fiscal year and coordination would be made by visiting the transaction site itself. 

Similarly, the metropolitan city has announced the provision to provide subsidies to the new taxpayers for joining the list of the taxpayers by the end of the first six months of the upcoming fiscal year.    

Furthermore, coordination will be made with the federal government to integrate the house rental tax into a one-door system. 

Members of the Madhes Provincial Assembly have accused the government of allowing middlemen to dominate the fiscal year 2025/26 budget. Lawmakers from both ruling and opposition parties claim the budget was influenced by external forces and is not people-oriented, with excessive manipulation by intermediaries.

The assembly has not held proper discussions on the budget, as six opposition parties have continued to protest, demanding a rewrite. On Monday, lawmakers obstructed the session, forcing its adjournment to Tuesday. In June, a budget meeting was abruptly announced just an hour before it was to be held. After an 11-day break, a session was held on Sunday but again adjourned due to joint protests by Janata Samajwadi Party Nepal (JSPN), CPN (Maoist Center), CPN (Unified Socialist), Nepal Sanghiya Samajbadi Party, Nagarik Unmukti Party, and Rastriya Prajatantra Party (RPP).

“Looking at the budget book, it’s evident that the plans were prepared by middlemen,” said Ram Ashish Yadav, chief whip of JSPN. “This year’s budget is deliberately skewed, impractical, and guided by intermediaries. It offers no direction for the province. One example is a 20-year-old project listed in the red book under the name of the Chief Minister’s father, for which Rs 18m has been allocated.”

The red book for 2025/26 shows that Chief Minister Satish Singh has allocated Rs 18m for an unfinished girls’ hostel initially funded by the Indian Embassy. The project, located at Mahendra Bindeshwari Multiple Campus in Rajbiraj, Saptari, was launched in 2005 under the chairmanship of Singh’s father, Shekhar Kumar Singh. Despite receiving Rs 19.6m from the Indian Embassy, the hostel remains incomplete two decades later.

“This budget lacks priorities, principles, and is entirely unprecedented,” said Ram Saroj Yadav, a Nepali Congress leader in the provincial government. “The Chief Minister publicly promised to exclude projects below Rs 10m, and the Finance Minister pledged not to include those below Rs 5m. Yet, the red book is full of such projects. It contradicts the very commitments made by our leadership. There’s no doubt the budget is influenced by middlemen.”

The provincial government has presented a budget of Rs 46.58bn for 2025/26. Notably, the Ministry of Sports and Social Welfare has allocated Rs 3m across two schemes named after Indian godman Asaram Bapu, who is serving a life sentence in India for raping a minor.

“There are serious disparities in project allocations,” said Sunita Yadav, a CPN (Maoist Center) lawmaker. “If this is truly a provincial budget, all MPs should have ownership. But here, middlemen override the MPs’ recommendations. We demand a complete rewrite of the budget—otherwise, we will not allow the Assembly to function.”

This is not the first controversy surrounding the budget in Madhes. In July last year, the 2024/25 budget was mired in scandal after allegations surfaced that outsiders had obtained a secret Finance Ministry password and inserted unauthorized projects into the red book—ignoring MPs’ recommendations. A parliamentary committee was formed with a pledge to investigate the breach. However, no investigation has taken place, and the individual behind the password leak remains unidentified.

Chief Minister Singh has acknowledged some errors in the budget but denied the involvement of middlemen. “We’ve repeatedly invited opposition parties for dialogue,” he said. “I want to assure the public that this budget is transparent.”