Kathmandu- Finance Minister Bishnu Prasad Paudel has announced a total budget of Rs 1.964 trillion for the fiscal year 2082/83 (2025/26).
Out of this, Rs 1.18 trillion has been allocated for recurrent expenditure, Rs 407 billion for capital expenditure, Rs 375 billion for financial management, and Rs 417 billion for fiscal transfers to provincial and local governments.
To finance the budget, the government plans to raise Rs 1.315 trillion from revenue, Rs 362 billion from internal loans, Rs 53.45 billion from foreign grants, and Rs 233 billion from foreign loans.
Minister Paudel highlighted key economic challenges, including money laundering, low productivity, declining youth interest in agriculture, ineffective infrastructure returns, slow digital development, skilled labor outflow, underutilized financial resources, and difficulties benefiting from credit ratings.
He also informed a high trade deficit, heavy reliance on remittances, challenges in increasing capital expenditure, and rising project costs due to delays.
To address these issues, the budget focuses on positioning the private sector as a key driver of economic growth, diversifying resources, strengthening the revenue system, prioritizing projects with tangible results, encouraging innovation, improving citizens’ quality of life, and creating broader economic opportunities.
The overarching goals include achieving high and inclusive sustainable economic growth, eradicating poverty, ensuring social justice, increasing production and efficiency, and delivering citizen-friendly services.
