Kathmandu: The Government of Nepal has set an ambitious target of achieving seven percent economic growth while capping inflation within a six percent limit for the upcoming fiscal year 2026/27.
Presenting the annual budget to the Federal Parliament on Friday, Finance Minister Dr Swarnim Waglé emphasized that the fiscal roadmap is built upon the pillars of economic transformation, deep structural reforms, and the restoration of confidence within the private sector.
Characterizing the budget as a document reflecting a new governance philosophy and a resolute commitment to change, Dr. Waglé stated that it provides a clear strategic roadmap for economic transformation. He noted that this budget serves as the starting point for fulfilling the political promises made to the citizens, transitioning from electoral commitments to tangible fiscal action.
The fiscal plan for the upcoming year prioritizes the establishment of robust governance, the creation of productive employment opportunities, and the expansion of the middle class. The Finance Minister highlighted that the budget aims to foster a competitive economy while laying the essential groundwork for ensuring a dignified standard of living for all Nepalese people.
Through this budget, the government seeks to redefine its role, moving beyond the traditional confines of a controller and regulator to become a proactive facilitator of opportunity. This shift is designed to modernize the state’s engagement with the economy, fostering an environment where innovation and enterprise can flourish under a more supportive institutional framework.
Identifying energy, agriculture, forestry, industry, tourism, information technology, and human capital as the key drivers of prosperity for the coming decade, the budget initiates a new phase of structural reforms in these high-potential sectors. By strategically focusing on these areas, the government intends to build a resilient and diversified economic base capable of sustained long-term growth.
Positioning the private sector as the primary partner in driving economic activity, the budget statement outlines measures to create an investment-friendly climate and promote entrepreneurship. The administration aims to trigger a vibrant economic cycle rooted in innovation, ensuring that private enterprise remains at the forefront of the nation’s development agenda.
Dr Wagle also expressed a firm commitment to making the public service delivery system more technology-driven, accountable, and result-oriented. He underscored the government’s intent to instil discipline in state affairs and ensure that the administrative machinery remains responsive and responsible to the needs of the public.
On the revenue front, the government aims to simplify the tax regime, making it more equitable and production-oriented to encourage compliance and investment. This approach is coupled with a policy of fiscal austerity and a move toward a result-driven spending system, ensuring that public expenditure is managed with the utmost discipline to achieve the nation’s developmental objectives.
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