According to the Constitution, Finance Minister Swornim Wagle is scheduled to present the budget for the fiscal year 2026/27 on Friday, May 29.
People across all sectors have high expectations from the new budget, as the country is passing through a serious economic crisis. The economy is witnessing a severe recession. Investors are uncertain and struggling to find safe avenues for investment; banks are facing excess liquidity due to weak demand for loans; industrialists are reluctant to invest because of heavy taxation and other structural problems; construction companies are suffering from rising prices of construction materials and are unable to complete projects unless the government introduces relief measures; airline companies are seeking subsidies as soaring petroleum prices—triggered by the war involving Iran and the crisis in the Strait of Hormuz—have increased operational losses; civil servants are eagerly awaiting salary increments; and youths are desperately seeking employment opportunities.
At the same time, the government has limited revenue resources. The conflict involving Iran has caused petroleum prices to skyrocket and disrupted supply chains. Rising fuel prices have created a chain effect across the economy. Business communities are demanding tax reductions, while industrialists, construction companies, airline operators, and other sectors are seeking relief packages from the government.
Under these adverse circumstances, the government cannot realistically fulfill the expectations of every sector.
The country’s fundamental problem lies in inadequate investment in development projects and excessive spending on non-productive sectors. The government should abandon unnecessary organs in the political system. To accelerate development and ensure the effective implementation of foreign direct investment, the government should amend existing laws and policies. At the very least, Nepal can draw lessons from the financial and investment policies adopted by Singapore, Hong Kong, and Dubai.
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