KATHMANDU: Finance Minister Dr. Swarnim Wagle has defended the government’s budget for the upcoming fiscal year, saying certain taxes were introduced for a limited period to protect domestic industries and boost local production.
Speaking at a post-budget discussion organized by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) in Kathmandu on Monday, Wagle said the budget was prepared amid constraints related to resources, time, and public expectations.
He acknowledged that long-standing structural economic challenges could not be resolved through a single budget, but expressed confidence that the new fiscal plan would contribute to significant economic improvements.
“The budget includes adjustments to various tax structures and measures aimed at reducing the overall tax burden,” he said. “In some sectors, taxes have been imposed for a specific period to protect domestic production, which is also the government’s responsibility.”
Wagle said the government, formed on the foundation of good governance, was committed to working with integrity and implementing corrective policy measures where necessary.
The finance minister also noted that although the budget projects around Rs 260 billion in foreign borrowing and Rs 410 billion in domestic borrowing, a substantial portion of those funds will be used to repay existing debt obligations.
He added that the budget was formulated with fiscal discipline and a strong sense of responsibility, maintaining a cautious approach to overall spending.
Speaking at the same event, FNCCI President Anjan Shrestha said the budget had attempted to break away from decades of economic protectionism, informality, and administrative hurdles. He also welcomed the government’s efforts to reform outdated and conflicting laws that have discouraged business growth.
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