Budget to focus on economic reforms, middle-class growth

By A Staff Reporter,Kathmandu, May 13 :Finance Minister Dr. Swarnim Wagle has said that the budget for the next fiscal year 2026/27 will be formulated in line with the commitments made by the Rastriya Swatantra Party during the election, as well as the party’s agenda of good governance reforms and the policies and programmes made public on Monday.

Speaking at a meeting of the Finance Committee under the Federal Parliament’s House of Representatives on Tuesday, he said that although resource management would be the biggest challenge in implementing the upcoming fiscal year’s budget, the government would make the necessary arrangements.

“Before the election, our party had prepared ‘100 Foundations of Transformation’ in the manifesto of the RSP, covering economy, good governance, infrastructure, social sector, and other key areas. After the formation of the government, we also took ownership of many of those commitments through the 100 immediate governance reform measures introduced by the government,” he clarified.

“Many of the promises made to the people before the election have also been incorporated into the policies and programmes presented on Monday,” he said.

He said that the government’s regular liabilities alone amount to around Rs. 1,330 billion, with a resource gap of nearly Rs. 700 billion.

He expressed confidence that resources could be mobilised for creative and productive programmes, adding that the government would turn challenges into opportunities.

He said that the Ministry of Finance had already sent budget ceilings to the ministries and clarified that if the proposed matters could be incorporated within that framework, the respective ministries would address them accordingly.

“The previous budget amounted to Rs. 1,964 billion, with Rs. 407 billion allocated for capital expenditure, but in reality only about Rs. 1,500 billion was spent. Even if capital expenditure reaches Rs. 200 billion by the end of the fiscal year, it would still be considered fortunate,” he said.

“In an economy worth Rs. 6,600 billion, capital expenditure of Rs. 200 billion is insufficient to fulfil development aspirations.”

He said that as the country’s needs cannot be addressed through regular sources alone, the government is preparing to immediately move forward with the “Alternative Financing Bill.”

“Immediately after we came into office, we repealed 15 old laws to send a message to the private sector that we are adopting an entrepreneur-friendly and private sector–friendly economic policy,” he said.

Themes for upcoming budget

“There are five themes for the upcoming budget. The first is the dividend of good governance — the time has come for Nepalis to benefit from good governance. The second is economic restructuring, with priority given to transforming the economy from a remittance-dependent model to a production-oriented and digital economy,” he said.

“The third is connectivity and integrated infrastructure for greater accessibility and proximity. Under this, we are making major investments in roads, energy, aviation safety, and digital grid networks,” said Finance Minister Dr. Wagle.

In the road sector as well, the government will invite private sector participation by using instruments such as the hybrid annuity model.

“The fourth theme is universal social upliftment and the expansion of the middle class. The fifth is strengthening our culture, tourism, and foreign relations, while integrating the Nepali diaspora into the mainstream of the national development campaign,” he said.

He said that the government would allocate more than Rs. 100 billion to the social sector and to expanding the middle class through greater financial inclusion.

Finance Minister Dr. Wagle also said that the government has introduced a liberal policy for the development of the securities market.

He said that the policies and programmes announced highly liberal measures regarding the stock market and capital market.