Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Finance Minister Bishnu Paudel is set to unveil an ambitious budget for the fiscal year 2082/83 (2025-26) today at 3 PM during a joint session of Nepal’s federal parliament. Sources indicate that the budget will exceed NPR 1.9 trillion, aiming to balance populist measures with structural reforms amid limited resources.
Despite ongoing parliamentary disruptions by opposition parties demanding Home Minister Ramesh Lekhak’s resignation over the visit visa controversy, they have assured no obstruction to the budget presentation.
The budget is designed to appeal to the private sector, middle class, and government employees. Key highlights include private sector involvement in road infrastructure through a Public-Private Partnership (PPP) Build-Operate-Transfer (BOT) model, reducing the government’s financial burden while boosting development. Additionally, underperforming public enterprises will be privatized or monetized, and exports of stone, gravel, and sand will be promoted.
To address political pressures, the controversial Constituency Development Fund has been indirectly reinstated, with parliamentarians invited to propose projects for their constituencies. Meanwhile, reforms include reducing the number of national pride projects, reviewing tax exemptions, and raising the age limit for old-age allowances. Small projects under NPR 30 million will be excluded, though ongoing ones will continue.
For the middle class, adjustments to income tax slabs are expected, with current rates ranging from 1% for incomes up to NPR 500,000 to 39% for incomes of NPR 5 million. These measures aim to stimulate economic growth while addressing political and public expectations.
Finance Minister Paudel’s budget is poised to set a transformative tone for Nepal’s economy, blending pragmatism with populist appeal.
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