Budget seeks to woo middle class despite resource constraints
Summary
Nepal's government has unveiled a Rs 2.124 trillion budget focused on boosting the middle class through salary increases, tax cuts, and business incentives, alongside ambitious economic growth targets and infrastructure development.
Key Points
- The Nepalese government proposes a Rs 2.124 trillion budget for fiscal year 2026/27 emphasizing salary hikes, tax reforms, and business-friendly policies.
- Revenue targets are ambitious, aiming to raise Rs 1.405 trillion, with additional funding from foreign grants and borrowing.
- The budget prioritizes infrastructure development, including plans to pave 1,000 kilometers of roads and build 200 bridges.
- Significant reforms include tax rate revisions, digitization of tax systems, reduction of federal ministries, and plans for a sovereign AI computing center.
