KATHMANDU: The government has announced a comprehensive overhaul of public enterprises (PEs) alongside plans to study a multi-tier Value Added Tax (VAT) system to boost revenue efficiency.

Presenting the federal budget for Fiscal Year 2026/27 before a joint session of the Federal Parliament on Friday, Finance Minister Dr. Swarnim Wagle outlined strategic steps to rescue and reform underperforming state entities.
To restore financial stability, the government plans to inject fresh capital and consolidate public shares in strategic entities.

For non-performing enterprises, the state will aggressively pursue mergers between organizations with overlapping objectives.

Furthermore, Dr. Wagle announced that the government will leverage Public-Private Partnership (PPP) models to upgrade, modernize, and manage these public institutions moving forward.