Rs2.12 trillion budget appeases middle class, banks on growth despite debt concerns
Summary
The government announced a Rs2.12 trillion budget for fiscal year 2026-27 focusing on infrastructure, tax reforms, and economic growth, while facing criticism over high borrowing and limited support for low-income groups.
Key Points
- The 2026-27 Rs2.12 trillion budget prioritizes infrastructure expansion, tax reforms, and aims for 7% economic growth.
- Significant income tax relief is provided for the middle class, with the exemption threshold raised to Rs1 million.
- The budget faces criticism for high foreign and domestic borrowing, raising concerns on debt sustainability.
- The plan includes reforms like divesting Nepal Telecom shares, unbundling Nepal Electricity Authority, and supporting agricultural investment subsidies.
