Government set to unveil new fiscal budget today, size likely to exceed Rs 21 Trillion.

Kathmandu-The government is set to unveil the national budget for the fiscal year 2083/84 today. Finance Minister Dr. Swarnim Wagle is scheduled to present the budget at a joint session of the Federal Parliament at 4 PM.

The upcoming budget is expected to focus heavily on economic reform and structural transformation. Key priorities include reducing unnecessary expenditure, promoting the private sector, maintaining fiscal discipline, strengthening governance, attracting investment, expanding infrastructure, boosting digital technology, creating jobs, and increasing domestic production.Finance Minister Wagle has repeatedly stated that the new budget will serve as the starting point for a broader reform agenda planned over the next five years. The government is also preparing to ensure funding for long-delayed national pride projects and accelerate their completion. Announcements regarding the restructuring or closure of underperforming public institutions are also likely.The government is preparing to increase the minimum salary of civil servants by at least 15 percent. It is also expected to revise the tax structure, raise the personal income tax threshold, and reduce the tax burden on businesses and middle-class households.

Expanding digital transactions and building a cashless, transparent, and leakage-free economy remain among the government’s major priorities. The budget is also expected to include plans to restructure social security programs based on the country’s economic capacity, promote entrepreneurship among returnee migrant workers, and establish a National Research and Innovation Fund.Rather than introducing a large number of new projects, the government says it will prioritize the completion of ongoing and high-return projects. Long-stalled transformational infrastructure projects are expected to receive greater focus and guaranteed funding.The size of the upcoming budget is estimated to exceed Rs 21 trillion. Earlier, the National Resource Estimation Committee led by National Planning Commission Vice-Chair Gunakar Bhatta had proposed a budget ceiling of around Rs 18.90 trillion. However, government sources say the ceiling was later revised upward after discussions at the highest political level.

According to officials, Prime Minister Balendra Shah “Balen” has pushed for a larger and more ambitious budget. Finance Minister Wagle, who in the past had criticized oversized budgets, now appears ready to introduce a high-deficit budget backed by ambitious revenue targets.In the current fiscal year, the government had initially allocated Rs 19.64 trillion, but later reduced it to Rs 16.88 trillion through a mid-term review due to weaker-than-expected revenue collection and lower foreign aid inflows.

Despite these challenges, the government believes revenue collection will improve significantly next year through tighter governance and better control of revenue leakages. Officials are also optimistic about increased foreign assistance and investment.With a two-thirds majority government in place, public expectations remain high, especially among young people hoping for greater employment opportunities and economic reforms. Government officials say the pressure to address these expectations has also contributed to the push for a larger and more ambitious budget this year.