Govt committed to boosting private sector morale, sets five-year economic roadmap: Finance Minister

KATHMANDU: Finance Minister Dr Swarnim Wagle said on Monday the government is committed to boosting private sector morale and steering the economy towards good governance and structural reform by moving away from traditional practices.

Speaking at the FNCCI programme ‘Budget for Fiscal Year 2026/27: Policy Dialogue’, Dr Wagle said the administration will work to end long-entrenched 'policy capture' at the policy level and the 'micro syndicates' that protect the interests of limited groups.

Acknowledging technical and preparatory shortcomings because the new budget was prepared within about two months of his appointment, the finance minister said the document lays out a clear roadmap for economic development over the next five years. “This government's action plan and resolve regarding which direction to take the country and what kind of economic reforms to make in five years are very clear,” he said. “We have brought this first year's budget by drawing an overarching vision and a long-term roadmap of five years. The government is completely open to moving forward by correcting and modifying the practical complexities seen in its implementation, confusions regarding tax rates, or other technical shortcomings based on the suggestions of the private sector.”

Minister Dr Wagle said the budget was prepared under constrained fiscal conditions and complex circumstances. He noted that about 70% of total allocation goes to mandatory liabilities and specific headings such as principal and interest payments on public debt, employees' remuneration, pensions and social security, leaving roughly 30% for new projects and stimulus measures. “Standing on this limited foundation, we have attempted to encourage the private sector and increase production,” he said.

Addressing concerns from industrialists about tax rates and revenue policy, the minister said the government has adopted measures to protect domestic industries and production. “The government is clear that the private sector is the main driver of economic development,” he said. “Our objective is not to discourage business, but rather to make it organised, transparent, and competitive. To break the sluggishness seen in the market and boost the morale of the contracted private sector, we will move forward with tight coordination between monetary policy and fiscal policy. I urge all industrialist friends to confidently increase their investments; I am ready to engage in dialogue 24 hours a day at the ministry to resolve your legitimate business difficulties.”

The finance minister cautioned that a single budget cannot instantly resolve structural and policy problems accumulated over decades, and said the government has already begun system reforms whose positive effects will be visible soon.