Govt sets five strategic priorities for upcoming budget, Targets governance and middle-class expansion

KATHMANDU: Finance Minister Dr. Swarnim Wagle has unveiled five major guiding principles for Nepal’s upcoming budget for fiscal year 2083/84 (2026/27), placing good governance, economic restructuring, integrated infrastructure development, social upliftment, and strengthening of Nepal’s soft power at the centre of the government’s fiscal roadmap.

Presenting the Principles and Priorities of the Appropriation Bill for the upcoming fiscal year in separate meetings of both houses of the Federal Parliament, Finance Minister Wagle said the government is preparing the budget with a strong emphasis on governance reform, employment-oriented economic growth, quality public service delivery, and equal opportunity.

According to the document tabled in Parliament, the government aims to align the forthcoming budget with the spirit of Nepal’s Constitution, democratic values, and principles of good governance, while ensuring policy stability, institutional strengthening, and a more result-oriented governance system.

“The budget is being prepared by placing good governance and justice, employment-driven economic growth, quality public services and equal access at its core,” Finance Minister Wagle said while outlining the government’s fiscal direction for the coming year.

Five Guiding Principles for FY 2083/84 Budget

The government has identified five key guiding principles for the next fiscal budget: ‘Dividend of Good Governance’, ‘Economic Restructuring’, ‘Integrated Infrastructure for Connectivity’, ‘Universal Social Advancement and Expansion of the Middle Class’, and ‘Strengthening Soft Power’.

Under the ‘Dividend of Good Governance’ framework, the government plans to make public services faster, more reliable, and technology-friendly so that citizens can directly experience improvements in state service delivery.

The Finance Minister said delays, bureaucratic hassles, and unnecessary middlemen in public service systems would be reduced through institutional reforms. The government has also pledged stricter measures against money laundering, revenue leakage, and misuse of public resources, signalling a stronger compliance and accountability framework.

Focus on Productive Economy and Private Sector Confidence

As part of the economic restructuring agenda, the government plans to prioritise an investment- and production-oriented economy while restoring confidence in the private sector.

The policy direction highlights digital economy, service exports, clean energy, and high-value agriculture as major growth drivers for Nepal’s economy in the upcoming fiscal period.

Finance Minister Wagle also stressed the need to dismantle unhealthy market practices such as syndicates and cartelisation, stating that the government aims to strengthen a social market economy through fair competition and improved business governance.

The budget is expected to place renewed emphasis on sectors capable of generating employment and export earnings, while improving Nepal’s competitiveness in regional and global markets.

Integrated Infrastructure Development Priority

The government has also placed integrated infrastructure development among the key pillars of the budget framework.

Under this approach, road transport, aviation, energy, urban infrastructure, and digital systems will be developed in a coordinated and interconnected manner to improve national connectivity and productivity.

The Finance Minister said the budget would incorporate a climate-resilient and disaster-risk-sensitive infrastructure model, reflecting Nepal’s increasing vulnerability to climate change, floods, landslides, and natural disasters.

This signals a shift toward more sustainable and resilient infrastructure planning, particularly in critical sectors such as transportation, hydropower, and urban development.

Education, Health and Middle-Class Expansion

On the social front, the government has pledged to ensure equal access to quality education, healthcare, nutrition, and skills development.

The budget framework also prioritises the promotion of agriculture, micro, small and medium enterprises (MSMEs) to expand Nepal’s middle class and improve household income opportunities.

The government plans to increase investment in technical and vocational education, with a focus on developing an employment-oriented education system aimed at reducing skill gaps and improving workforce readiness.

Economic Diplomacy and Nepal’s Global Presence

The fifth pillar, strengthening soft power, seeks to improve Nepal’s international visibility and credibility through economic diplomacy, tourism, cultural identity, and technology-driven engagement.

The government also plans to introduce legal and policy reforms to mobilise the skills, capital, and global networks of Non-Resident Nepalis (NRNs) for national development.

Finance Minister Wagle said the state intends to create a more enabling policy environment to attract diaspora investment and expertise, positioning overseas Nepalis as strategic partners in Nepal’s long-term economic transformation.

The upcoming national budget is expected to reflect these principles in greater detail when the government formally unveils the annual fiscal plan in Parliament later this month.