Minister Wagle meets ex-finance ministers for budget recommendations
KATHMANDU: Finance Minister Dr Swarnim Wagle met eight former finance ministers to gather recommendations for the budget for fiscal year 2026/27. He said the plan is in its final stages and will aim to improve living standards through good governance.
Minister Wagle told the former ministers and economists the upcoming budget would build on past experience and positive practices while adapting to new circumstances. He said past achievements and weaknesses would be reviewed and successful measures would be continued. "We will move forward by following the good work done by you. We are to walk the path shown by our predecessors. Prosperity is to be achieved through this very system and these political achievements," he said.
Participants urged a range of measures, including economic reforms, realistic revenue targets, cuts in expenditure, steps to boost private sector confidence, and increased investment in production‑oriented sectors.
Former Finance Secretary Rameshore Prasad Khanal called for implementation of the High‑Level Economic Reform Task Force report. He warned against allocating budget funds to unprepared and fragmented projects and asked that Value Added Tax (VAT) not be applied to the electricity sector.
Meanwhile, former finance minister Shanker Prasad Koirala said policy decisions should follow reviews of earlier economic reports. He proposed opening the private sector to electricity trade, expanding industrial zones, and advancing a hedging policy.
Dr Yuba Raj Khatiwada cautioned against setting overambitious revenue targets and advised a revenue growth rate of 10 to 12%. He suggested a budget of around Rs 2 trillion, along with financial sector reforms and measures to strengthen private sector morale. Khatiwada also called for an end to unmanaged trends in national pride projects, more effective agricultural subsidies, and closer coordination with Nepal Rastra Bank on financial reforms.
Dr Prakash Chandra Lohani urged greater cooperation between government and private industry. He recommended policies that equally encourage small, medium and large enterprises and said economic dialogue was needed to access Indian markets for agricultural products.
Surendra Pandey proposed reducing the number of large projects and concentrating on a limited set of national pride projects. He also recommended reforming land use laws and introducing special plans for tourism development.
Dr Prakash Sharan Mahat suggested targeting social security allowances to specific groups and operating government industries and properties under lease arrangements. He advocated reducing foreign debt and guarding against collusion in large contracts.
Barshaman Pun noted weak returns from past infrastructure projects and urged increased investment in tourism infrastructure. He recommended developing hill stations and wedding destinations to attract the Indian middle class.
Bishnu Prasad Paudel called for a budget based on realistic expenditure assessments and said bold decisions were needed on the use of mines and natural resources. He recommended proceeding with large projects such as Budhigandaki.
Janardan Sharma said the budget should implement political commitments and stressed the need to cut government spending. He recommended boosting investment in mining, pharmaceuticals, chemical fertiliser production, and skills development.
Most former ministers shared a common view on accelerating economic reforms, strengthening private sector confidence, controlling expenditures, and prioritising investment in production‑oriented sectors as the government finalises the budget for upcoming fiscal year.
(With inputs from RSS)
