KATHMANDU: The government has presented a total budget of Rs 2.124 trillion for fiscal year 2026/27, outlining major fiscal, tax, financial, and sectoral reforms aimed at boosting economic growth, improving public services, and attracting investment.
The government has also set a revenue target of Rs 1.405 trillion for the upcoming fiscal year.
Finance Minister Swarnim Wagle, while presenting the federal budget in Parliament, announced a broad reform agenda covering taxation, capital markets, agriculture, health, infrastructure, and governance.
A key tax reform includes raising the personal income tax exemption threshold from Rs 600,000 to Rs 1 million, aimed at easing the burden on middle-income earners. Capital gains tax on listed securities will now be treated as a final tax, simplifying compliance for investors and removing additional tax liability.
The government also announced reforms to allow Non-Resident Nepalis (NRNs) to participate in the secondary securities market, along with updates to foreign investment approval processes, profit repatriation rules, and investment accounting systems to improve capital inflows.
On fiscal discipline, the government has set a 10 percent salary increase for civil servants, with the minimum salary fixed at Rs 40,000 and the maximum capped at Rs 100,000.
In agriculture, Rs 32.46 billion has been allocated for chemical fertiliser subsidies, up from Rs 28.82 billion, to ensure continued supply of imported fertilisers. The government will also explore domestic fertiliser production through feasibility studies. Additionally, Rs 46.42 billion has been allocated to the Ministry of Agriculture and Livestock Development, along with Rs 2.07 billion for agricultural modernisation.
In the health sector, Rs 13.15 billion has been allocated for social health protection programmes, aimed at expanding access to essential healthcare services for vulnerable groups.
The government has also announced plans to resolve issues related to squatters and landless citizens within the fiscal year 2026/27 through systematic policy interventions.
In tourism, Nepal will be promoted as a global wellness tourism hub, with incentives for luxury hotels and resorts. The Civil Aviation Authority of Nepal (CAAN) will be restructured by separating regulatory and licensing functions to improve aviation safety compliance and international standards.
Cultural preservation initiatives include plans to seek World Heritage listing for sites such as Tilaurakot, Gokarneshwar, and Janakpur Dham.
Additional allocations include Rs 4.3 billion for the sports sector, including lifelong healthcare support for international medal-winning athletes.
Overall, the budget focuses on fiscal consolidation, investment facilitation, sectoral expansion, and structural reforms aimed at strengthening long-term economic stability and growth.
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