Budget of near two-thirds mority govt: What to expect?

KATHMANDU: The near two-thirds majority government is set to present the national budget for the fiscal year 2083/84 on Friday, marking the first budget of the Rastriya Swatantra Party (RSP)-led administration.

Finance Minister Dr. Swarnim Wagle, who has been aggressively pushing budget preparations based on the RSP’s election manifesto, will unveil the budget in line with the constitutional provision requiring the annual budget to be presented on Jestha 15 (May 29).

The current fiscal year’s budget stood at Rs 19.64 trillion. This year, however, the government is preparing to introduce a budget estimated to be Rs 200–300 billion larger, featuring several ambitious programs.

According to officials involved in the budget drafting process, the upcoming budget will prioritize good governance, economic reforms, employment generation, education, healthcare, technology, and restructuring of the state mechanism.

The RSP has already pledged to transform Nepal into a middle-income country within the next decade, achieve an annual economic growth rate of 7 percent, expand the economy to USD 100 billion within seven years, and boost IT service exports to USD 30 billion.

Officials say the budget has been designed to align with these commitments.

Despite public expectations, the government is unlikely to increase social security allowances this year due to mounting pressure on state resources.

However, the Ministry of Finance is said to be in the final stages of preparations to raise salaries for civil servants, which have remained unchanged for a long time.

The budget is also expected to include plans to end political interference in state mechanisms and ensure that all government services are delivered through an “online, not line” system.

Additionally, substantial funding is reportedly being allocated to a high-level commission tasked with investigating assets accumulated since 1990 as part of anti-corruption efforts.

Officials involved in the drafting process say the budget will also focus on making health insurance more effective, reforming the education system to make it more practical and employment-oriented, and expanding investment and jobs through collaboration with the private sector.

Agriculture, tourism, energy, and information technology are expected to be presented as key pillars of Nepal’s economic transformation.

As the RSP manifesto strongly emphasizes judicial reform, meritocracy, transparency, and accountability in public institutions, officials say the upcoming budget will largely revolve around those priorities.