KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
The budget for fiscal year 2026/27 reflects the government’s attempt to balance fiscal discipline with political and social expectations amid slowing economic momentum and rising public pressure for reforms.
While the Rs 2.124 trillion budget prioritises austerity through plans to dissolve public bodies, cut administrative costs, and strengthen anti-money laundering measures to exit the FATF grey list, it simultaneously introduces populist measures such as salary hikes, higher tax exemptions, women-focused transport services, and expanded welfare commitments.
The budget also signals a stronger focus on structural reforms, including digital governance, corporate law modernisation, infrastructure expansion, and investment-friendly policies. However, concerns remain over implementation capacity, high recurrent expenditure, limited capital spending efficiency, and whether the announced reforms can generate sustainable economic growth and restore public confidence in governance and state institutions.
Finance Minister Wagle presents budget for fiscal year 2026/27
Finance Minister Swarnim Wagle on Friday began presenting the annual budget for fiscal year 2026/27 before a joint session of the Federal Parliament. The presentation marks the 75th formal budget announcement in the country’s history and the first federal budget presented by Wagle since assuming office as finance minister. Ahead of the presentation, Prime Minister Balendra Shah convened a Cabinet meeting at 2:30 pm at the Office of the Prime Minister and Council of Ministers in Singha Durbar to endorse the government’s income and expenditure estimates for the upcoming fiscal year. Wagle was also scheduled to brief the Cabinet on the new budget amid heightened public and political interest over the country’s economic direction and fiscal policy priorities.
Government unveils Rs 2.124 trillion budget for FY 2026/27
The government has announced a budget of Rs 2.124 trillion for the upcoming fiscal year 2026/27. Presenting the budget before a joint session of the Federal Parliament, Finance Minister Swarnim Wagle said Rs 1.270 trillion has been allocated for recurrent expenditure, accounting for 59.8 percent of the total budget. Likewise, Rs 431.10 billion has been allocated for capital expenditure, while Rs 422.24 billion has been earmarked for financial management.
Government aims to remove Nepal from FATF grey list
Presenting the federal budget for fiscal year 2026/27, Finance Minister Swarnim Wagle announced strict anti-money laundering measures alongside fiscal austerity plans aimed at saving Rs 20 billion in state expenditure. Wagle said the government would take immediate and effective steps to remove Nepal from the Financial Action Task Force (FATF) grey list as soon as possible. To reduce growing administrative expenses, the government has also introduced a fiscal consolidation plan involving three major cost-cutting measures expected to save around Rs 20 billion.
Government raises income tax exemption threshold to Rs 1 million
The government has announced a major tax reform programme aimed at easing the financial burden on taxpayers and simplifying the domestic tax system. Presenting the budget for fiscal year 2026/27, Finance Minister Swarnim Wagle said the individual income tax exemption threshold had been doubled to Rs 1 million annually. The move is expected to increase disposable income, particularly among salaried and middle-income groups. The budget also removes excise duties on 360 goods to help reduce production costs and stabilise consumer prices.
Gold Traded at Rs 290,600, Silver Rs 5,040 Today
The prices of gold and silver have increased in the market today. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of gold has increased by Rs 5,600 per tola (11.66 grams) today, with trading currently taking place at Rs 290,600 per tola. On Thursday, gold was traded at Rs. 285,000 per tola. Similarly, the price of silver has also gone up. According to the Federation, silver is being traded at Rs 5,040 per tola on Friday, following an increase of Rs 175 per tola. On the previous day, silver was bought and sold at Rs. 4,865 per tola.
Government announces new visa bill, women-only blue buses, and salary hikes
The government has unveiled a series of welfare and infrastructure programmes in the federal budget for fiscal year 2026/27, including immigration reforms, women-focused public transport services, and salary increases for state employees. Presenting the budget in Parliament, Finance Minister Swarnim Wagle said a new visa bill would be introduced to simplify and digitise immigration procedures and create a more investment-friendly environment for foreign investors and businesses. The government also announced plans to operate CCTV-equipped “Blue Bus” services exclusively for women in the Kathmandu Valley to improve commuter safety. In addition, authorities pledged to make Valley roads dust-free through improved road maintenance and mechanised cleaning. The budget also includes regular salary and benefit increases for civil servants, security personnel, and public school teachers to improve efficiency, accountability, and employee morale.
Government to dissolve 31 public bodies and restructure 18
The government has announced a major administrative reform programme under the new federal budget aimed at reducing state expenditure and improving efficiency. Presenting the budget for fiscal year 2026/27, Finance Minister Swarnim Wagle said 31 public bodies would be dissolved and 18 others restructured as part of broader efforts to streamline government operations. The plan also includes reducing unnecessary posts across government offices, with officials estimating savings of around Rs 20 billion in recurrent expenditure. The reforms are expected to improve institutional efficiency while redirecting resources towards development and infrastructure projects.
Government plans to upgrade major hospitals into medical universities
The government has announced plans to develop three leading health institutions into international-standard medical universities. Presenting the federal budget for fiscal year 2026/27, Finance Minister Swarnim Wagle said Tribhuvan University Teaching Hospital, Bir Hospital under the National Academy of Medical Sciences (NAMS), and Patan Academy of Health Sciences (PAHS) would be upgraded and restructured into world-class medical universities. The government said the initiative aims to strengthen medical education, research, and healthcare services while positioning Nepal as a regional hub for medical studies.
Customs operations suspended ahead of budget presentation
The Department of Customs suspended all commercial cargo clearance operations at border checkpoints today to facilitate updates to automated tariff systems ahead of the budget presentation. Administrative directives issued to customs offices nationwide halted the processing of entry manifests from last night. Customs offices stated that cross-border freight processing would remain suspended until revised import duties, updated health excise taxes on alcohol and tobacco products, adjusted VAT exemptions, and increased import tariffs on electric vehicles were fully integrated into the national system.
Ministry drafts new company bill to legalise sweat equity structures
The Ministry of Industry, Commerce and Supplies has prepared the conceptual framework for the Company Law Amendment Bill, 2026, aimed at replacing the outdated Company Act, 2006. The proposed framework formally recognises sweat equity as a legitimate corporate mechanism, allowing entrepreneurs to obtain company shares through technical expertise, intellectual property, and labour contributions without upfront cash investment. The proposed reforms also seek to establish a fully paperless digital corporate registry system and introduce measures such as employee stock option plans, minority shareholder protections, simplified company closure procedures, and whistleblower protection mechanisms.
Planned service outage disrupts traffic fine payment system
The Kathmandu Valley Traffic Police Office confirmed that its digital citation processing system experienced a planned service outage on Friday beginning at 3:30 pm. The disruption, which affected public fine payment services for between four and 14 hours, was caused by scheduled technical upgrades carried out by the Financial Comptroller General Office. Officials temporarily shut down the Revenue Management Information System for database maintenance, preventing motorists from paying outstanding traffic fines or processing digital vehicle document recovery requests through online portals.
Economic survey highlights cooperative sector performance
The Ministry of Finance’s Economic Survey 2026/27 stated that a total of 32,325 cooperatives had been registered across the country by mid-March 2026. According to the survey, the cooperative sector mobilised member savings worth Rs 1.29 trillion and generated 82,216 direct jobs.
Of the 23 cooperatives declared problematic by the government, three have completed the liquidation process. Authorities recorded 80,087 compensation claims worth Rs 47.601 billion, of which Rs 2.546 billion has been disbursed to settle 3,688 individual accounts.
CAAN commissions parallel taxiway at TIA
The Civil Aviation Authority of Nepal (CAAN) has officially commissioned a newly constructed western parallel taxiway at Tribhuvan International Airport. Built under the Air Transport Capacity Enhancement Project, the new taxiway connects terminal gates, maintenance hangars, and aircraft aprons directly to the Pashupati side of the runway. Airport authorities estimate that eliminating the need for aircraft to backtrack along the runway will increase hourly runway capacity by 15 to 20 percent, reduce airborne holding time, save aviation fuel, and improve passenger movement efficiency.
Upper Trishuli Hydro Project Completes First Spillway Weir Gate Installation
The developers of the 216 MW Upper Trishuli-1 Hydroelectric Project successfully completed the structural installation and mechanical testing of its primary spillway weir gate in Rasuva today. Managed by a consortium of South Korean enterprises under a direct foreign investment model, engineering teams from Doosan Enerbility commissioned the first of three massive hydro-mechanical flow control gates at Haku in the Amachodingmo Rural Municipality-1. The overall multi-billion-rupee project has reached an absolute physical progress milestone of 82 percent, following the total completion of its 9.5 kilometer primary headrace tunnel, and remains on track to supply 1.53 billion annual kilowatt-hours to the Nepal Electricity Authority.
Jumla Infrastructure Expansion Upgrades Gididaha Lake Tourism Hub Logistics
The Karnali Province government intensified infrastructure development projects at Gididaha Lake in Jumla today, aiming to scale up arrivals at the high-altitude tourist destination situated 3,485 meters above sea level. Following momentum from the regional tourism summit of 2022, rural development bureaus constructed mountain trekking trails, public rest houses, clean drinking water systems, and sanitation facilities. Logistical tracking confirms the completion of a specialized eco-homestay facility at Phulchaulya Patan, which was built via a Rs 1.5 million provincial treasury grant. Physical dimensions recorded by the National Lake Conservation Committee map the body of water at 1,510 meters long and 42.8 meters deep.
Birgunj Customs reports exports worth Rs 88 billion
The Birgunj Customs Office has reported that Nepal’s merchandise exports reached Rs 88.22 billion during the first 10 months of the current fiscal year. The figure marks an increase from Rs 83.25 billion recorded during the same period last year. Processed soybean oil accounted for the largest share of exports at Rs 48.11 billion, followed by processed sunflower oil at Rs 5.35 billion, fruit juices at Rs 6.42 billion, woven textiles at Rs 3.03 billion, and synthetic yarn at Rs 2.25 billion.
Hill Station Hotels Register Surging Occupancy
Regional hospitality ledgers published in Palpa today showed that tourist hotels across Tansen and surrounding hill stations achieved high room occupancy rates as domestic travelers fled rising temperatures in lowland cities. Hotel Association Palpa tracked massive weekend arrivals arriving from urban centers including Butwal and Bhairahawa. Tourism tracking metrics indicate a shift where domestic travelers extended typical one-night stays into two-night packages. However, trans-border automotive arrivals from India dropped significantly, a contraction which travel operators attributed directly to recent fuel price hikes that increased long-distance driving costs for private holidaymakers and cross-border tour buses.
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