Nepal Budget: 21.24 Trillion Budget, Economic Growth Rate of 7% Projected

NTV WorldMay 29, 2026

Finance Minister Dr Swarnim Wagle has presented the annual estimation of government’s income and expenditure of more than 21.24 trillion Rs for the fiscal year 2026/27.

In the joint meeting of legislature parliament, Friday, Minister Wagle presented the budget which is almost two trillion higher than the celling set by the national planning commission.

Breaking down the expenditure details, finance minister Wagle said that he has allocated 12.70 trillion Rs for current expenditure.

Likewise, there has been little increment in capital expenditure with 4.31 trillion Rs allocation.

Likewise, expenditure for fiscal management has been allocated at 4.22 trillion Rs.

Projecting the income for the upcoming fiscal year, finance minister Dr Wagle said 14.4 trillion will be recovered from revenue collection which is almost two trillion higher than the current fiscal year.

Likewise, 61074 billion will be managed through grant and 200.47 billion will be generated from foreign loan according to finance minister Dr. Wagle.

Internal loan of 400.10 billion will be drawn to manage the income according to finance minister Dr Wagle.

Meanwhile minister Dr. Wagle has ambitiously projected economic growth rate of 7% for the new fiscal year.

The growth rate sounds ambitious given the current fiscal year’s growth rate of 3.85%

Presenting the budget Finance Minister Wagle expressed his hope that the budget will set a standard for the good governance.

Minister Wagle said the upcoming budget will bring transformations in policies, laws, institutions, procedures and leadership, thus establishing the good governance.

Stating that the nation is in the decisive juncture of comprehensive economic reforms, Minister Wagle said the budget is centered on massive reforms in economy and the establishment of good governance.

According to minister Dr, Wagle the new budget is primarily focused on production-based economy, good governance and technology-friendly development.

The Minister claimed that this time’s budget has been presented as a reliable document for policy transformations instead of limiting it as an official statement.

Information and communications, artificial intelligence, finance, trade, investment and collective capacity of Nepali community that spread across the globe have been presented as major bases for economic transformations.

Minister Wagle said the government aims to build new structure for a coordinated economic growth through the proper utilization of new technology.

Budget 2026/27 Highlights

Individual taxpayers limit increased to 1 million Rs
Customs duty on 273 types of raw materials reduced
11-level customs structure reduced to 7 levels
Excise duty levied on 360 items abolished
Fully automated VAT refund system
31 government bodies scrapped/18 restructured
Sunset Laws to be introduced
Matribhumi Kosh’ for establishing an AI factory
360 types of excise duties scrapped
Green energy bond
Lottery schemes to encourage practice of invoices in transaction
NEA restructured into three separate companies for generation, transmission, and distribution and trading of power
Private sector to be allowed to trade electricity in the international market.
Large and reservoir-based project promotors to be allowed to sell up to 40% of the shares to the general public in the first year.
High-level advisory committee tasked with evaluating the applicability of a multi-rate system in VAT
Sports sector allocated 4.03 billion
Flood light equipped football stadiums in eight major cities
International cricket stadiums in eight major cities
120 billion allocated for social security schemes
218.3 billion allocated for education sector
206.8 billion allocated for Physical and Urban development
Investment Express program to encourage to revive industries
Nursing Staff entitled to 100% increment in night shift
Health sector allocated 101.95 billion
Nepal to be declared street-child free country
Nepal to be promoted as a ‘wellness tourism’ destination
Civil employee’s salary increased by 21%
Sovereign wealth fund by utilizing foreign currency reserve
Economic growth rate of 7% projected for 2026/27
Economic growth rate revised to 3.85% for current fiscal year