KATHMANDU: Welcome to Nepal News’ Evening Economic Brief—your go-to source on key financial updates in Nepal. Stay informed with concise insights on market trends, economic indicators, and policy shifts. Here are today’s top economic news highlights.

Finance Minister Unveils Budget for FY 2025-26, Budget Size Set at Rs 1.964 trillion: The government has set the budget size for the upcoming fiscal year 2082/83 (2025-26) at Rs 1.964 trillion. Finance Minister Bishnu Prasad Poudel presented the budget today in the Federal Parliament, detailing the allocation of funds across various sectors. Out of the total budget, Rs 1.181 trillion has been earmarked for recurrent or operational expenditures, which cover day-to-day government expenses. Capital expenditure, which includes investments in infrastructure and development projects, has been allocated Rs 408 billion.

Finance Minister Paudel Outlines Five Key Objectives and Seven Priorities: Presenting the national budget for fiscal year 2082/83 in the joint session of the Federal Parliament, Finance Minister Bishnu Prasad Paudel outlined five core objectives and seven key priorities of the upcoming fiscal policy, which is set to come into effect from Shrawan 1 (mid-July 2025). According to Minister Paudel, the five primary objectives of the new budget are: to achieve high, sustainable, and broad-based economic growth with the goal of poverty alleviation; to promote entrepreneurship and expand both public and private investment in order to create jobs; to enhance economic capacity through the increased use of modern technology; to ensure social justice through social protection and development programs; and to promote quality public services and good governance.

Federal Government to Transfer Rs 582.83 billion to Provinces and Local Levels: The Government of Nepal has announced that it will transfer Rs 582.83 billion to provincial and local governments through financial transfers in the upcoming Fiscal Year 2082/83 (2025-26). Presenting the national budget at the joint session of the Federal Parliament, Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel said this amount will be allocated to subnational governments through revenue sharing and various grants. According to him, based on the recommendation of the National Natural Resources and Fiscal Commission, Rs 60.66 billion will be transferred to the provinces and Rs 88.97 billion to local levels as equalization grants.

Third-Party Settlement to Expedite Health Insurance Payments: The government has allocated NPR 1 billion for the health insurance program in the upcoming fiscal year 2082/83 (2025-26). Presenting the budget speech in the joint session of the Federal Parliament, Finance Minister Bishnu Prasad Paudel informed that this fund is aimed at strengthening the health insurance scheme. He further stated that the pending insurance claim payments will be settled this fiscal year through a third-party settlement mechanism, ensuring timely reimbursement and better management of the program.

Additional 942 MW Power to Be Added in FY 2025-26, Installed Capacity to Reach 4,800 MW: In the fiscal year 2082/83, the Government of Nepal plans to generate an additional 942 megawatts of electricity from hydropower projects set to be completed within the year. With this addition, the country’s total installed power generation capacity will reach 4,800 megawatts. Alongside generation, the government has also targeted the construction of 731 kilometers of national transmission lines to enhance electricity distribution and reliability across the country.

Government Raises Age Limit for Senior Citizen Allowance to 70 Years: The government has increased the age limit for receiving the senior citizen allowance. Previously, all senior citizens who had completed 68 years of age were eligible to receive the allowance. However, the government has now raised this limit by two years, setting it at 70 years again. Nonetheless, senior citizens from remote, marginalized, and Dalit communities will continue to receive the allowance at the earlier age of 60. Finance Minister Bishnu Prasad Paudel explained that this decision was made after careful consideration of recommendations from the High-Level Economic Reform Commission and feedback from relevant stakeholders.

Podway Transport to Be Advanced as Modern Urban Mobility Solution: The Government of Nepal has announced plans to promote and implement the “Podway” public transport service. Finance Minister Bishnu Prasad Poudel made the announcement while presenting the annual budget for the fiscal year 2082/83 (2025-26). Earlier, an agreement was signed to study the feasibility of Podway service in Koshi Province. During the Investment Summit held on Baisakh 18 and 19, 2082 (May 2025), the Koshi Province Government and Kathmandu Podway Company entered into a formal agreement for this purpose.

Private Sector to Be Positioned as Pillar of Economic Growth: Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has announced that the private sector will be established as a key driver of economic prosperity in Nepal. Presenting the budget for the fiscal year 2082/83 (2025-26), Minister Paudel stated that the government will gradually implement the recommendations of the High-Level Commission on Economic Reform 2081. He further emphasized that the government will focus on diversifying financial resources to meet the minimum investment requirements following Nepal’s upgradation to a developing country by 2026, and to achieve the Sustainable Development Goals (SDGs) by 2030.

Government Allocates Rs 211.9 billion for Education Sector in Budget 2082/83: The government has allocated Rs 211.9 billion for the education sector in the upcoming fiscal year 2082/83 (2025-26). Presenting the annual budget in the joint session of the Federal Parliament on Thursday, Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel highlighted that this significant allocation aims to promote the overall development and expansion of the education sector across the country.

Airlines Operating at Pokhara and Bhairahawa Airports to Receive Incentive: The government has announced special facilities and incentives for airline companies operating flights at Pokhara and Bhairahawa airports under the new fiscal year 2082/83 (2025-26) budget. Finance Minister Bishnu Prasad Poudel highlighted that the budget includes tax exemptions and other benefits designed to encourage Kathmandu-based airlines to expand their operations to these international airports. Furthermore, the budget has allocated Rs 500 million for the management and development of domestic airports, aiming to improve infrastructure and services across the country’s aviation sector.

No Salary Hike for Civil Servants; Dearness Allowance Increased by Rs 3,000: 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.

Finance Minister Poudel Presents Economic Survey for FY 2081/82: Finance Minister Bishnu Prasad Paudel has presented the Economic Survey for the current fiscal year 2081/82 in the Federal Parliament. He announced that the country is expected to achieve an economic growth rate of 4.61 percent this year. According to him, all provinces except Madhesh, Koshi, and Sudurpaschim are projected to register growth rates above the national average. The total size of the economy is estimated to reach Rs 61.07 trillion. He further stated that agriculture contributes 25.16 percent to the Gross Domestic Product (GDP). The inflation rate for the year is projected to stand at 4.72 percent.

Government to Allocate Rs 10 billion for Health Insurance Program: The government is set to allocate Rs 10 billion for the Health Insurance Program in the upcoming fiscal year. The Ministry of Finance, in its proposed budget, has reserved this amount for the program. The ministry has been assigned a ceiling of Rs 96 billion. Initially, the Ministry of Finance had set a budget ceiling of Rs 83 billion for the ministry, which was Rs 3 billion less than the previous year’s Rs 86 billion allocations. However, after evaluating the increased expenditure under the ministry and the inadequacy of funds for health insurance, the Finance Ministry increased the ceiling by Rs 13 billion.

No Major Programs for Industry Ministry in New Budget: The Ministry of Industry has stated that no significant programs or projects have been included in the budget for FY 2082/83. However, officials claim the programs are aimed at boosting private sector morale. Spokesperson Jitendra Bahadur Basnet of the Ministry of Industry, Commerce, and Supplies said that due to a limited budget ceiling, major new programs could not be introduced. “Only 0.4% of the total budget is allocated to the ministry. With such a small share, launching transformative programs in the industrial sector is unlikely,” he said. Proposals were discussed with the Finance Ministry, but due to budget constraints, they could not proceed.

Banks Required to Maintain 90% Daily Minimum Cash Reserve: Banks and financial institutions are now required to maintain a minimum of 90 percent of the statutory cash reserve on a daily basis. Nepal Rastra Bank amended its unified directives, increasing the requirement from the earlier 70 percent. According to the revised directive, class ‘A’, ‘B’, and ‘C’ financial institutions licensed by the central bank must now hold at least 90 percent of the mandatory reserve amount daily. The total mandatory reserve remains four percent of total deposits, but daily compliance requirements have been tightened.

Government Spends Less Than 66% of Current Fiscal Year’s Budget: As the new budget announcement nears, the government has spent less than 66% of its current fiscal year’s budget. Out of the Rs 1.8603 trillion allocated for this year, only Rs 1.2923 trillion has been spent. This means Rs 631.06 billion needs to be spent within the remaining 1.5 months, requiring a daily spending rate of Rs 14.02 billion. According to the Office of the Auditor General, as of Jestha 15, only Rs 967 billion in revenue has been collected out of the Rs 1.419 trillion target—just 68% of the goal.

Over Rs 920 billion Worth of Projects Listed in National Project Bank: As of Tuesday, the National Project Bank has registered 1,327 projects worth Rs 920 billion. Among these, 117 are new projects, 89 are ongoing, and 1,121 are under study. The highest number of listed projects—1,141—are those with a budget of Rs 30 million each, followed by 79 projects in the Rs 30–50 million range.

Ginger Export Market Falls by Over Half: Nepal’s ginger, once thriving in the global market until last year, has seen its export volume plunge by more than half. Nepal used to export ginger worth around Rs 1.25 billion annually to various countries. But data from the first 10 months (Shrawan–Chaitra) of the current fiscal year 2081/82 have disappointed ginger farmers, traders, and concerned authorities. According to the Department of Customs, only 3,161 tons of ginger worth Rs 527.5 million were exported to different countries in the 10-month period.

Customs Collects Over Rs 3.28 billion in a Single Day: The Department of Customs collected more than Rs 3.28 billion in customs revenue on Jestha 14 alone. The spike in revenue was due to a sudden surge in imports. On the eve of the budget announcement, many traders rushed to clear customs on fears that customs duty and excise might increase. Additionally, a large number of vehicle imports on that day—one of the highest taxed items—also contributed significantly to the revenue boost.

NICCI Raises Concerns with Central Bank Governor: The Nepal–India Chamber of Commerce and Industry (NICCI) has briefed the central bank governor about several challenges faced by Indian multinational companies in Nepal. Led by President Sunil KC, a NICCI delegation met newly appointed Governor Dr. Bishwanath Paudel on Wednesday and discussed issues such as profit repatriation for foreign staff, payment complications for cross-border services, and inefficiencies in the single-window system.

Ministry Launches Four Urban Development Models to Bridge Rural-Urban Gap: The Ministry of Urban Development has introduced four urban development models aimed at bridging the rural-urban divide. Among these, the first model is Integrated Urban Development, which seeks to connect villages and towns through comprehensive planning. This model aims to provide basic urban services—such as roads, drinking water, electricity, healthcare, and education—to rural areas, while linking rural products with urban markets. According to the ministry, this integrated development model will be instrumental in narrowing the gap between rural and urban communities.

State-Owned Enterprises to Be Converted into Public Limited Companies: The upcoming budget for FY 2082/83 proposes converting state-owned enterprises into public limited companies and selling shares to the public. This move, announced in the budget on Thursday, is in line with recommendations from the High-Level Commission on Economic Reforms, which also advises raising capital through bond issuance.

Telecom Providers Say 5G Rollout Not Feasible Yet: Despite claims by the Minister for Communication and other officials that 5G will be rolled out in major cities this year, telecom companies say it’s not technically, financially, or operationally feasible at the moment. Both Nepal Telecom and Ncell, the major service providers, expressed difficulties in launching commercial 5G services. Experts suggest that completing 4G expansion should be the priority first.

Ministry Cuts Daily Milk and Monthly Ghee Allowance for DDC Employees: The Ministry of Agriculture and Livestock Development has cut the daily one-liter milk and monthly one-liter ghee allowance provided to employees under the Dairy Development Corporation (DDC) starting Wednesday. The ministry cited the necessity to clear dues to dairy farmers and repay loans taken from the government as reasons behind the decision. The ministry also noted that similar cuts are implemented in other public enterprises when they face financial losses.

Palm Oil Export Decline Linked to Quality Issues: Palm oil, once Nepal’s top export item, is in sharp decline due to technical reasons and unethical business practices. Although palm oil rose to the top of Nepal’s export list in the past decade, it couldn’t sustain its lead. Analysts say the inability to maintain quality and the greed-driven rush for quick profits by a few business groups led to its downfall.

Illegal Imports and Shrinking Third-Country Trade Impact Biratnagar Customs: Revenue collection at Biratnagar Customs has suffered for five years, primarily due to declining trade with third countries and illegal imports from India. The customs office depends largely on the import of industrial raw materials. Commercial goods like textiles, footwear, and other items from both India and third countries have sharply declined, along with imports of motorcycles, petroleum products, MS billets, and crude oil.

Purwanchal Lube Oil Reports Rs 651 million in Sales in Nine Months: Purwanchal Lube Oil, backed by former NADA President Krishna Prasad Dulal, recorded sales worth Rs 651 million in the first nine months of the current fiscal year. The company posted Rs 787 million in 2024, Rs 774 million in 2023, and Rs 753 million in 2022. Established in 2001, it became a public company in 2022. The firm produces and sells lubricants and grease under the PLO, Star, Mega, and Suraksha brands.

Bagmati Province Unveils Priority Sectors in Budget Plan: Bagmati Province has prioritized agriculture, tourism, education, employment, and infrastructure in its FY 2082/83 policy and programs. In Wednesday’s provincial assembly meeting, Province Head Deepak Prasad Devkota emphasized the implementation of exclusive provincial rights. The policy includes adopting a single-window system for infrastructure development and ensuring funding commitments for multi-year plans within the first trimester of the fiscal year.

Prabhu Heli Adds New Airbus Helicopter to Fleet: Prabhu Heli Limited has added a new helicopter manufactured by world-renowned French aerospace company Airbus. The newly added H125 model helicopter carries the call sign 9N-ANT. Subash Amatya, chairman of Prabhu Heli, stated that the H125 helicopter was chosen for its high safety, reliability, and efficiency in remote and high-altitude operations. The advanced H125 (AS350B3e) helicopter has the capacity to carry five passengers and comes equipped with state-of-the-art technology.

Rs 4.57 billion in Irregularities Found in Lumbini Province: A total of Rs 4.57 billion in financial irregularities has been identified in Lumbini Province to date. According to the Office of the Auditor General, this figure marks a 13.78 percent increase compared to last year. In fiscal year 2080/81 (2023/24), irregularities totaling Rs 657.2 million were identified through audits of provincial government offices, committees, and other institutions. Last year, 211 agencies—including ministries and affiliated institutions—were audited, involving a total budget of Rs 54.16 billion.

Fertilizer Shortage Hits Bardiya Despite Early Monsoon: With the monsoon arriving earlier than in previous years, farmers in Bardiya district are busy preparing their fields. However, they are once again facing a shortage of urea and DAP fertilizers. About 50,250 hectares in Bardiya are under rice cultivation. Farmers in the district report that the annual fertilizer shortage during plantation season has led to reduced yields. Rajapur area, known as a rice pocket zone, is particularly affected.

Gold Prices Fall for Fourth Consecutive Day: Gold prices have dropped again today (Thursday), marking the fourth consecutive day of decline. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price per tola of gold has decreased by Rs 1,500, settling at Rs 187,800. Since Monday, gold has dropped by Rs 2,500 per tola. Yesterday, it was priced at Rs 189,300.