Kathmandu: Finance Minister Dr Swarnim Waglé is set to present the national budget for the fiscal year 2026/27 to the Federal Parliament on Friday.
This marks a significant milestone as it is Nepal’s 75th annual budget and the first to be delivered by Dr Wagle himself. As a comprehensive projection of the nation’s revenue and expenditure, the budget serves as a pivotal political and economic document aimed at steering the country and its citizens toward financial prosperity.
The tradition of formal budgeting in Nepal began in 1951 following the advent of democracy. The then Finance Minister, Subarna Shumsher Rana, introduced the nation’s inaugural budget, which moved away from the secretive, family-centric financial dealings of the Rana regime toward a more transparent, people-oriented approach.
This first budget, totalling roughly 52.5 million rupees, was presented on February 4, 1952, and was broadcast via Radio Nepal, though the specific distinction between Indian and Nepalese currency was not clearly defined in those early years.
In its infancy, the budgeting process was fraught with administrative hurdles; the first year actually saw a deficit as administrative and defence spending surged by 40 per cent and 15 per cent, respectively, over projections. Early budgets often struggled to pass or faced significant delays, with some only receiving approval well after the fiscal year had begun.
By the mid-1960s, under Finance Minister Surya Bahadur Thapa, the government began addressing complex issues like currency exchange rates and the establishment of a centralized auditing system through the Accountant General’s Office to ensure fiscal accountability.
Over the decades, various Finance Ministers introduced transformative policies that shaped modern Nepal. In the early 1970s, Gehendra Bahadur Rajbhandari shifted toward program-based budgeting and notably reformed the liquor industry while imposing taxes on the export of wildlife parts like tiger skins and musk, which were legally traded at the time.
Later, Dr Bhesh Bahadur Thapa introduced regional allocation strategies and life insurance for civil servants, while Dr Yadav Prasad Pant pioneered reforms for state-owned enterprises and removed barriers to inter-district trade, fostering a more integrated national economy.
The early 1980s marked a turning point toward economic liberalization. Dr Yadav Prasad Pant’s budgets declared the private and public sectors as complementary, paving the way for capital market laws and mandating commercial banks to invest at least ten percent of their deposits into priority sectors. This era also saw the opening of Nepal’s skies to foreign airlines, signalling the country’s intent to integrate more deeply with the global economy and boost its burgeoning tourism sector.
The history of the budget is also marked by intense political drama and record-breaking tenures. While Dr Ram Sharan Mahat holds the record for presenting the budget seven times, other ministers faced significant opposition. A low point in parliamentary history occurred in 2010 when Maoist lawmakers physically obstructed Finance Minister Surendra Pandey, snatching his briefcase and tearing the budget document in the middle of a night session. Such instability often forced governments to resort to special ordinances to keep the state’s finances running.
Similar chaos ensued during Bharat Mohan Adhikari’s tenure when a budget was leaked to the media via the ministry’s website after he was blocked from speaking in parliament. To put an end to such procedural uncertainty and political manoeuvring, the Constitution of Nepal, issued in 2015, established a mandatory date for the budget presentation. By fixing the date to the 15th of Jestha (late May) every year, the nation ensured that its most critical economic roadmap remains insulated from the whims of political protests, providing a stable foundation for the annual fiscal cycle.
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