KATHMANDU: The government has fixed a budget ceiling of Rs 1.890 trillion (1,890 billion) for fiscal year 2026/27 while moving ahead with major fiscal and administrative reforms, including the abolition of the Department of Revenue Investigation.

Finance Secretary Ghanshyam Upadhyay informed the House of Representatives’ Finance Committee that the ceiling was set by the National Resource Estimation Committee based on projected revenue and spending needs. Ministries have already been given their budget limits and directed to enter their plans into the budget system.

He said the Ministry of Finance is reviewing priorities with ministries, focusing on completing ongoing projects and cutting unnecessary expenditures. Capital spending in the current fiscal year stands at 26 percent, while revenue collection has reached 60 percent of the target, or Rs 886 billion.

Upadhyay confirmed that the Department of Revenue Investigation will be scrapped due to overlapping functions, with its responsibilities redistributed among relevant agencies.

He added that 39 government structures and over 300 posts have already been removed, while 15 outdated laws are being repealed.