KATHMANDU: Nepal Development Watch (NEDEW) has said that the government’s budget for Fiscal Year 2026/27 reflects a reform-oriented policy direction, while also highlighting the need for stronger targeted interventions for marginalized communities.
The organization said the budget aligns with goals of economic growth but stressed that inclusive measures for disadvantaged groups remain essential to ensure balanced development.
NEDEW described the government’s plan to reduce the number of federal ministries from 22 to 18 and to merge or abolish 31 government agencies as a clear step toward improving governance and administrative efficiency.
It also noted that the budget, which stands at Rs 2.12 trillion, is the largest in Nepal’s history. However, the organization warned that managing the financial gap between projected revenue and expenditure will remain a major challenge for the government.
The organization welcomed tax and economic reforms targeting the middle class, investors and the technology sector, calling them positive indicators for economic modernization.
It also appreciated the increase in nutrition allowances for Dalit children, the expansion of nutrition programs in high-poverty districts, and priority allocations in health and education sectors.
Despite these positive aspects, NEDEW cautioned that benefits from public investment may not reach all communities equally. It emphasized the need for targeted programs to support marginalized groups to ensure equitable development outcomes.
The organization further suggested that the budget should be strengthened in areas such as job creation, export promotion and improving the investment climate to make economic reforms more effective and sustainable.
Comment