KATHMANDU, June 15: Nepal Development Watch has said that the budget for the Fiscal Year 2026/27 brought by the government is more reform-oriented in terms of policy direction.
NEDEW has pointed out that the budget needs targeted interventions for marginalised communities along with economic growth goals. The organisation described the government's plan to reduce the number of federal ministries from 22 to 18 and to abolish or merge 31 entities as clear steps towards good governance.
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Even though the budget of Rs 212 billion is the largest in Nepal's history, managing the financial gap, which is bigger than the expected revenue, will remain a challenge for the government, according to the institution.
NEDEW has stated that tax and economic reforms focused on the middle class, investors and the technology sector as positive signs. The organisation has also welcomed the increase in nutrition allowance for Dalit children, the expansion of nutrition programmes in highly impoverished districts, and some priorities in health and education.
However, NEDEW has pointed out the risk that the benefits of public investment may not reach all communities equally, noting targeted programmes for marginalised groups are necessary. The organisation suggests that the budget needs to be more effective in areas like job creation, export promotion and improving the investment environment.
