Opinion | Can businesses alone save an unreformed state?
Summary
Nepal's FY 2026-27 budget emphasizes private sector-led growth with a record Rs2.124 trillion but lacks structural state reforms and social inclusion measures.
Key Points
- Finance Minister Sarnim Wagle announced Nepal's largest budget of Rs2.124 trillion for FY 2026-27, focusing on private sector-driven growth.
- Nearly 60% of the budget covers recurring expenses, limiting funds for productive capital investments and infrastructure.
- The budget increases civil servant pay by 21% but lacks strategies to reduce dependence on remittances and create jobs.
- Policies favor capital-intensive sectors and large agricultural investments, potentially excluding smallholders and widening inequality.
