Budget for FY 2026/27: 31 govt bodies to be scrapped

KATHMANDU: Finance Minister Dr Swarnim Wagle is presenting the budget speech for the fiscal year 2026/27 in a joint sitting of the federal parliament, attended by members of the House of Representatives and the National Assembly.

He says the government will scrap 31 bodies and restructure 18 others as part of the fiscal plan. The budget for the current fiscal year stands at about Rs 1,964.11 billion.

Breaking with tradition, Dr Wagle entered parliament carrying a Nepali paper notebook containing the budget document instead of the customary briefcase. He is outlining measures that include an automated salary increase for civil servants and security personnel.

“As per the budget speech, 31 government bodies will be scrapped, and 18 others restructured,” the minister said. He added: “A convincing atmosphere will be created for improving the sovereign credit rating of Nepal,” and announced that a matribhumi kosh, or motherland fund, would be set up to establish an AI factory.

The minister also said sunset laws will be introduced to accelerate development projects and pledged to lift the country out of the grey list. Other initiatives in the speech include a green energy bond and the launch of lottery schemes to encourage the use of invoices in transactions.

Dr Wagle further announced that the government will remove 360 categories of excise duties. Earlier, a Cabinet meeting at the Office of the Prime Minister and Council of Ministers endorsed the budget speech before it was presented to parliament.