Kathmandu: During a press conference at the Ministry of Finance on Sunday, Finance Minister Dr Swarnim Wagle clarified that the government’s recently presented budget for the fiscal year 2026/27 is rooted in fiscal realism rather than populism.
Addressing widespread speculation and rumours that the budget would balloon to 25 trillion rupees, the Minister emphasized that the government has capped the total outlay at a more sustainable 2.124 trillion rupees. He noted that the administration intentionally avoided an oversized expenditure plan to ensure that national spending remains manageable and aligned with current economic realities.
Dr Wagle further explained the macroeconomic context of the budget, stating that the allocated 2.124 trillion rupees represents roughly 28 percent of the projected Gross Domestic Product (GDP). With the nation’s GDP estimated to reach 7.458 trillion rupees in the coming year, the government’s spending plan is designed to be proportionate to the overall size of the economy. By anchoring the budget to these projections, the Ministry aims to foster economic stability while pursuing its strategic development objectives.
In a move to reassure the public and international observers of the government’s fiscal health, the Minister highlighted that the budget remains strictly within prescribed borrowing boundaries. He asserted that the planned debt required to bridge the fiscal gap has been kept well below the mandatory 5 percent GDP threshold. This calculated approach to debt management is part of a broader effort to maintain the country’s long-term financial integrity while securing the necessary resources to drive national growth and recovery.
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