05/30/2026
My Perspective on the Annual Budget Presented by Honorable Finance Minister Dr. Swarnim Wagle to the Federal Parliament
The Government of Nepal has unveiled an annual budget of NPR 2.124 trillion for the Fiscal Year 2083/84 (2026/27).
The budget was presented before the joint session of the Federal Parliament on Friday by the Honorable Finance Minister, Dr. Swarnim Wagle, a renowned economist. Educated at prestigious institutions, including Harvard University, and having previously served at the World Bank, Dr. Wagle has demonstrated a forward-looking vision by departing from traditional budgetary practices and introducing bold initiatives aimed at steering Nepal toward modernization and technological advancement.
This budget introduces several encouraging programs for both ordinary citizens and government employees. To boost the morale of civil servants, the government has announced a 21 percent increase in salaries.
Likewise, significant tax relief has been proposed for the general public. Under the new provisions, individuals earning up to NPR 1 million annually will no longer be required to pay income tax, a measure expected to provide substantial relief to middle-class families.
The budget places special emphasis on youth and technology. With the objective of transforming Nepal into a global information technology hub, the government has proposed the establishment of an Artificial Intelligence (AI) Computing Center in Syuchatar. This initiative reflects Nepal’s commitment to embracing emerging technologies and fostering innovation.
Responding to the aspirations of the younger generation, particularly Generation Z, the government has adopted policies aimed at restructuring the economy and reducing unnecessary expenditures. As part of this effort, 31 underperforming government entities and Nepal’s embassies in Denmark, Brazil, and South Africa are proposed to be merged or phased out in order to improve efficiency and reduce administrative costs.
The budget has also incorporated the concept of the “Blue Bus,” a transportation vision associated with Rastriya Swatantra Party (RSP) Chairman Ravi Lamichhane. This inclusion has been positively received by many RSP lawmakers and supporters, who view it as a transformative initiative for Nepal’s transportation and infrastructure sectors.
In the labor and employment sector, the government has allocated NPR 3.63 billion. Programs such as the “Returnee Migrant Program” and the “Motherland Fund” aim to utilize the knowledge, skills, and experiences of Nepalis returning from foreign employment.
To encourage productive investment of remittance income, the government plans to establish a “Remittance Investment Matching Fund,” ensuring that remittance earnings contribute not only to consumption but also to economic productivity and national development.
The energy sector has also received special priority. The government has allocated NPR 70 billion to accelerate the completion of transmission lines and substations currently under construction. In the coming fiscal year, an additional 1,040 megawatts of electricity generated from hydropower and solar energy are expected to be connected to the national grid, increasing Nepal’s total electricity generation capacity to approximately 5,535 megawatts.
The budget also introduces long-term development initiatives, including a 40 percent incentive subsidy program for agriculture and the “Vision 2040” plan for the systematic development of the Kathmandu Valley. These initiatives make the budget both ambitious and promising.
In summary, considering the rising cost of living, the government has announced a historic and substantial increase in civil service salaries. Effective from Shrawan 1, 2083, the net salary of government employees is expected to increase by approximately 21 percent.
While presenting the budget for Fiscal Year 2083/84, Finance Minister Dr. Swarnim Wagle explained that the increase consists of a 10 percent adjustment in the existing pay scale and an additional 10 percent increase within the revised salary structure, resulting in an overall net increase of approximately 21 percent.
With inflation reportedly reaching 17.3 percent, the government has taken this major fiscal step to ease the burden on public servants, improve their quality of life, and motivate them toward higher levels of performance. Under the revised structure, the minimum government salary is expected to reach NPR 40,000 per month, while senior officials in the highest grades will earn well above NPR 100,000 per month.
The Finance Minister has clarified that the revised salary structure will be implemented nationwide beginning on Shrawan 1, 2083. Although earlier projections suggested only a 15 percent increase, the approximately 21 percent net adjustment has come as a welcome surprise to the civil service community. The government expects that this measure will strengthen employee morale and contribute to more efficient, transparent, and responsive public service delivery.
Some economists, however, have expressed concern that increasing salaries without effectively controlling market prices could further fuel inflation and place additional pressure on private-sector workers. Nevertheless, I believe that increasing government salaries by up to 21 percent amid 17.3 percent inflation is a justified and necessary step that may also help reduce delays, inefficiency, and corruption within public institutions.
Beyond these measures, the overall Fiscal Year 2083/84 budget presented by Honorable Finance Minister Dr. Swarnim Wagle deserves recognition and appreciation. I believe it has the potential to contribute meaningfully to Nepal’s prosperity and improve the quality of life of its citizens.
For the upcoming fiscal year, the government has allocated NPR 2.124 trillion, including NPR 1.270 trillion for recurrent expenditures, NPR 431.10 billion for capital expenditures, and NPR 422 billion for financial management. In my view, this reflects a carefully planned and professionally structured budget framework.
Another particularly welcome aspect is the government’s commitment toward the principle of “Once a Nepali, Always a Nepali” for the global Nepali diaspora. The proposed reforms to Non-Resident Nepali (NRN) citizenship provisions represent a timely and progressive initiative.
While presenting the budget, the Finance Minister emphasized the government’s intention to provide Non-Resident Nepalis with comprehensive economic, social, and cultural rights and to integrate them more effectively into the nation-building process. I consider this vision to be both farsighted and highly relevant to contemporary realities.
The government’s decision to provide a ten-year income tax exemption for new movie theaters established outside metropolitan and sub-metropolitan areas is another commendable initiative that can promote cultural and economic activity across the country.
Overall, the projected revenue, expenditure plans, and programmatic priorities appear practical, purposeful, and result-oriented. These measures deserve appreciation and support.
In conclusion, following the Gen-Z-led political transformation and the emergence of a new era of public representation, I believe it is entirely appropriate to openly commend the people-centered, innovative, and forward-looking budget presented by Honorable Finance Minister Dr. Swarnim Wagle on behalf of the Government of Nepal.
In my view, this budget ranks among the most remarkable and visionary budgets in Nepal’s history. The policies and programs it contains can reasonably be described as positive, national-interest-oriented, realistic, accountable, effective, and widely beneficial. It is my sincere belief that the budget provides a strong foundation for Nepal’s future development and prosperity.
Respectfully,
Khagendra Adhikari
President
Association of Nepalis in the Americas (ANA)
Washington, D.C.
North America
