Nepal Targets 6% Economic Growth in 2025-26 Budget, Requires NPR One Trillion Investment

KATHMANDU: Finance Minister Bishnu Prasad Paudel, presenting the budget for the fiscal year 2082/83 (2025/26) during a joint session of both houses of the Federal Parliament on Thursday at 3 PM, announced an ambitious economic growth target of 6% for the upcoming year. The budget also sets an inflation target of 5.5%.

In contrast, the current fiscal year (2081/82) aimed for 6% economic growth and 5.3% inflation, but the Central Statistics Office reported that only 4.61% growth is likely to be achieved.

Nepal’s economy reached NPR 61.07 trillion in the current fiscal year. Economists estimate that achieving the 6% growth target for 2082/83 will require an investment of approximately NPR 10 trillion. However, skepticism surrounds the target’s feasibility, as no government has met its economic growth goals since the COVID-19 pandemic, largely due to unrealistic budgets and implementation challenges.

While the government has set a growth target above the average, critics argue it falls short of being overly ambitious. Concerns persist that the budget lacks specific programs to attract significant private sector investment, casting doubt on whether the 6% growth target can be realized.

This announcement comes alongside other budget measures, including a NPR 19.64 trillion allocation and policies to boost digital payments and infrastructure, as part of efforts to drive economic expansion.

Fiscal Nepal |
Thursday May 29, 2025, 05:51:38 PM |


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