KATHMANDU: Finance Minister Bishnu Prasad Paudel has allocated over one-third of Nepal’s national budget for the upcoming fiscal year to his own ministry.
Unveiling the budget for fiscal year 2025/26 during a joint session of the Federal Parliament on May 29, Paudel announced a total budget of Rs 1.964 trillion, out of which Rs 648.92 billion—or 33.03 percent—has been earmarked for the Ministry of Finance under multiple budget headings.
The finance ministry has retained this significant share across six different budget programs. Under code 305, Rs 49.90 billion has been set aside for capital expenditure and financial liabilities.
Code 502 includes an allocation of Rs 343.55 billion for repaying the government’s domestic debt. Similarly, under code 503, Rs 49.40 billion has been allocated to repay multilateral foreign loans, while code 504 holds Rs 18.05 billion for the repayment of bilateral foreign loans.
One of the largest individual allocations, Rs 109.65 billion, falls under code 601, which is designated for civil servant salaries, pensions, and other employee benefits.
Meanwhile, Rs 78.35 billion under code 602 has been categorized under miscellaneous and discretionary spending, which includes government hospitality, travel, customs refunds, emergency funds, and financial aid to other ministries.
This particular heading has often been criticized for its lack of transparency and flexible usage.
In comparison, former Finance Minister Barshaman Pun had allocated Rs 795.23 billion to the Ministry of Finance during the current fiscal year 2024/25. Although this year’s total budget is 5.6 percent larger than last year’s, Paudel has reduced the allocation for his own ministry by Rs 146.31 billion compared to his predecessor.
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