Government unveils NRs 2.124 trillion budget for 2026/27 marking sharp expansion

The government has presented a national budget of NRs 2.124 trillion for the fiscal year 2026/27, unveiling a significantly expansionary fiscal plan despite concerns over revenue capacity and spending efficiency.

The budget was announced on Friday in a joint session of the Federal Parliament by Finance Minister Swarnim Wagle, who outlined total government expenditure of NRs 2.124 trillion.

The figure represents a notable increase compared to the current fiscal year. Last year, the government had introduced a budget of NRs 1.964 trillion, which was later revised downward to NRs 1.688 trillion during implementation adjustments. 

Read budget highlights here: Finance Minister Swornim Wagle set to present Budget 2026/27

Against this revised estimate, the new budget is higher by approximately 25.9%, while it reflects an increase of around 8.2% compared to the original allocation. It also exceeds the National Planning Commission’s budget ceiling of NRs 1.890 trillion by about 12.4%.

For the upcoming fiscal year, the government has allocated NRs 1.270 trillion for recurrent expenditure, NRs 431 billion for capital expenditure, and NRs 422 billion for financial management, indicating a continued emphasis on maintaining a large administrative and development financing structure.

On the revenue side, the government expects to raise NRs 1.405 trillion and NRs 61.74 billion from foreign grants. The remaining NRs 657.29 billion gap will be financed through borrowing, including NRs 247.28 billion in external loans and NRs 410 billion through domestic borrowing.