Budget Shows Positive Policy Reforms, But Execution and Debt Reliance Remain Key Concerns: Former FM Mahesh Acharya

KATHMANDU – Former Finance Minister Mahesh Acharya has said that the budget for fiscal year 2083/84 has positively highlighted economic and policy reform agendas, while stressing that its success will depend entirely on effective implementation and investor confidence.

Speaking shortly after Finance Minister Dr. Swarnim Wagle presented the national budget in Parliament, Acharya said the government appears more serious about long-standing reform issues raised by both the public and private sectors.

“Looking at the budget presented after the formation of a new government, it appears the government is more serious about economic reforms,” Acharya said. “The budget has attempted to address policy and legal reforms that have long been demanded by both the public and private sectors.”

He, however, cautioned that the real impact of the budget would depend on implementation capacity and the ability to restore private sector confidence.

According to him, it is still uncertain whether the announced reforms will translate into tangible improvements in business sentiment and investment activity.

Execution Key to Success, Says Acharya

Acharya emphasized that the success of policy and legal reforms depends on how effectively the government and administrative machinery execute them.

“The success of these policy and legal reforms depends on implementation,” he said. “How the government and bureaucracy carry them out will determine whether the announced plans actually succeed.”

He further suggested that the government should continuously monitor policy outcomes and remain open to adjustments where necessary.

Concern Over Rising Debt Dependence

The former finance minister also expressed concern over the increasing reliance on public debt in the budget, describing it as a potential long-term risk to fiscal stability.

He noted that with a budget exceeding Rs 2.1 trillion, the growing dependence on borrowing for financing is a worrying trend that requires serious policy debate.

“The financing structure of this budget shows heavy dependence on debt, which could be risky for the future,” he said. “The government must hold clear discussions on rising debt burdens.”

Reform Agenda and Investment Climate

Despite concerns, Acharya described the budget as a starting point for reform, urging the government to ensure continuous dialogue in Parliament and maintain a supportive environment for economic transformation.

He also expressed hope that the budget would open space for constructive parliamentary debate and help strengthen collaboration between political actors and economic stakeholders.

“The government seems to have recognized the need for economic reforms,” he said. “I hope this opens the door for meaningful parliamentary dialogue and a positive environment for cooperation.”

Acharya also described Finance Minister Wagle as a leader who understands Nepal’s economic challenges and potential, noting that the budget reflects some level of groundwork toward addressing structural issues in the economy.

The former finance minister concluded that while the budget carries reform-oriented intentions, its long-term success will depend on policy consistency, institutional execution, and sustainable debt management.