CAN Federation to hold dialogue to assess IT budget for FY 2026/27
KATHMANDU: Federation of Computer Association Nepal (CAN Federation) has announced a high-level multi-stakeholder dialogue to be held to assess the impacts, opportunities and challenges arising from the government's newly announced information technology budget for fiscal year 2026/27.
The government unveiled a Rs 2,124.34 billion budget for the coming fiscal year that, for the first time, identifies information technology and digital innovation as central pillars of the country’s long-term economic strategy. The tech sector has broadly welcomed the state’s aim to shift Nepal from an import-reliant economy towards a higher-value digital economy.
Under the guidance of CAN Federation Acting President Chiranjibi Adhikari, the federation prepared a conceptual framework outlining the budget’s potential significance for the domestic technology ecosystem. The federation said a key question remains: whether the budget will remove longstanding obstacles for innovative startups, software exporters, freelancers and digital entrepreneurs, or whether existing administrative and structural hurdles will slow progress.
It includes several flagship initiatives intended to accelerate digital transformation. Announced measures include the establishment of a Sovereign AI Compute Centre at Syuchatar, tax incentives for IT exports, a 10% digital VAT rebate, the sale of Nepal Telecom shares with accompanying tech hub financing, and expanded support for e-governance and the fintech ecosystem.
However, startup founders and industry experts have voiced reservations about practical implementation. Concerns centre on whether the Sovereign AI Compute Centre will be accessible to small startups and independent developers or dominated by large corporate groups, whether the proposed 50% export income tax exemption will be reachable for freelancers and early-stage firms given bureaucratic procedures, and whether the Rs 500 million enterprise fund will back innovation without requiring traditional collateral.
The IT community also pointed to unresolved systemic issues that the budget does not directly address. These include limitations with international payment gateways, complex intellectual property registration procedures, insufficient funding for early-stage research and development, and restricted access to global cloud infrastructure and digital financial tools.
To discuss these matters, CAN Federation is set to host an interaction programme at its secretariat in Khusibu, Kathmandu, today from 4:00 pm to 5:30 pm. The event will bring together government representatives, policymakers, private sector leaders, tech entrepreneurs, financial experts and economic journalists to assess the budget’s practicalities and the likely trajectory of Nepal’s digital economy.
