KATHMANDU: Finance Minister Dr. Swarnim Wagle is presenting the fiscal year 2026/27 budget today at 4:00 PM before a joint session of parliament.

Aligning with Republic Day, the new fiscal plan prioritizes sweeping administrative governance, tax adjustments, and a 15% salary hike for civil servants.

The policy explicitly targets expediting national pride projects nearing completion while eliminating underperforming public entities to drive a long-term goal of a $100 billion economy.

However, the ambitious targets face severe fiscal strain. Over the past decade, Nepal’s budget size has doubled, but revenue collection and capital spending have consistently lagged.

For the current fiscal year, while Rs 1.964 trillion was initially allocated, actual revenue collection is projected to hit just Rs 1.021 trillion.

This widening structural gap has forced a heavy reliance on public debt to cover mandatory obligations, an issue compounded by the state’s persistent inability to spend 20 to 25 percent of its annual capital allocations.