Govt plans to collect Rs 1.6tn in revenue in FY 2026/27: Finance minister

KATHMANDU: The government plans to collect Rs 1.6 trillion in revenue in the upcoming fiscal year, Finance Minister Dr Swarnim Wagle said on Monday.

Speaking at an interaction titled 'Post Budget Discussion' organised by Nepal Association of Financial Journalists (NAFIJ) in Kathmandu, Dr Wagle said the budget for fiscal year 2026/27 was prepared with a five‑year perspective and projects the country’s gross domestic product to reach Rs 7,458 billion once the plan is implemented. He said the government expects this level of GDP to support an economic growth rate of about 7% next year.

The finance minister confirmed that the government will maintain its decision to levy value‑added tax (VAT) on electricity consumption exceeding 50 units per month. He argued that a consumption‑based tax is a more effective tool than an income‑based approach and said the budget’s programmes were advanced because they were achievable.

Meanwhile, on external sector issues, Nepal Rastra Bank (NRB) Executive Director Guru Prasad Paudel said remittances remain the foundation of the country’s foreign currency reserves and emphasised the need to increase domestic production and boost exports to make reserves sustainable.

Leaders from private sector organisations welcomed the budget and urged timely and effective implementation. Nepal Chamber of Commerce (NCC) President Kamlesh Kumar Agrawal, Confederation of Nepalese Industries (CNI) President Birendra Raj Pandey, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Vice President Naresh Lal Shrestha, and NAFIJ President Menuka Karki expressed support for the budget’s direction and called for coordinated action to meet its targets.

The Ministry of Finance’s revenue target and the VAT decision on higher power consumption are likely to influence fiscal policy and household spending in the coming year, while policymakers and business leaders highlighted export growth and domestic production as priorities for macroeconomic stability.