KATHMANDU: In the federal budget for fiscal year 2082/83 (2025-26), the Government of Nepal has not increased the salaries of civil servants. However, the dearness allowance has been raised by Rs 3,000, bringing it to a total of Rs 5,000 per month.

Presenting the budget in Parliament on Thursday, Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel explained that despite persistent demands from civil servant associations to raise salaries even marginally, the government was unable to do so due to financial resource constraints.

Finance Minister Poudel further stated that the government plans to retain land ownership of public enterprises under its name as part of institutional reform.

According to him, studies will be conducted into Janakpur Cigarette Factory, Gorakhkali Rubber Industry, and Hetauda Cement Factory, with a view to increasing government investment in these state-owned enterprises.

Additionally, foreign visits that impose a financial burden on the institutions will be restricted. The budget also outlines a commitment to adopting a policy of fiscal austerity in line with constitutional provisions.