KATHMANDU: At a post-budget press conference on Sunday, Finance Minister Dr. Swarnim Wagle clarified that the recently presented Rs 2.124 trillion budget for FY 2026/27 is disciplined and tailored to the state’s financial capacity, dismissing initial market rumors of an oversized Rs 2.5 trillion plan.

Dr. Wagle highlighted that the fiscal package accounts for just 28.5% of the projected Rs 7.458 trillion GDP, intentionally breaking past trends where spending peaked at up to 37% of GDP.

He reassured that newly targeted borrowing—consisting of Rs 410 billion in domestic borrowing and Rs 247 billion in external loans—remains strictly within the mandatory 5% GDP ceiling.

Addressing the country’s existing debt structure, which currently stands at Rs 2.975 trillion (roughly 43% of GDP), the Finance Minister explained that a significant portion of the incoming capital will be directly utilized to service and repay these preexisting obligations to maintain long-term stability.