2083/84 budget at a glance

The Balen led government, which is almost two-thirds majority government secured in the March 2026 elections, has announced its annual budget 2,124.34 billion on May 29, 2026, as the largest budget in Nepal's history, representing a 25.2 present increase over the revised estimates of the current fiscal year 2082/83. 

Most of the financial experts and economic analysts opine that this budget, although optimistic, has broadly, boldly and wisely covered key and major aspects of the national all round development. Huge tax reforms, massive infrastructure allocations, transformative sectoral policies, 7 percent targets on economic growth and inflation capped at 6 percent are the key aspects of the highly optimistic budget. This shows a departure from a decade of political instability toward productive governance. It has included first sovereign AI computing centre, doubling of personal income tax exemption thresholds, 21 percent civil servant salary increases, and restructuring of the Nepal Electricity Authority into three separate companies.

This 2083/84 budget encompasses recurrent expenditure for government operations, capital expenditure for infrastructure and development projects, and financial management for debt servicing and lending.

Expenditure Category          Amount (Rs Billion)      % of Total Budget      

Current (Recurrent) Expenditure     1,270.58          59.8%

(Salaries, operations, debt interest, administrative costs)

Capital Expenditure                   431.10             20.3%      

(Infrastructure, development projects, construction)

Financial Management                 422.64             19.9%      

(Debt repayment, lending, financial transfers)

Total Budget Outlay                  2,124.32          100%

Looking at the budget allocation under capital expenditure, 20.3% as compared to the recurrent expenditure, 59.8 %, it cannot be expected that the government will be able to implement expected level of development activities. The ideal ratio between operational expenses and capital expenditure should be 60:40%.