Nepal's Budget Has Nearly Doubled, A Decade in Review
Nepal's national budget has shown a clear upward trend over the past decade, reflecting the government's growing ambitions in public spending. Starting from Rs. 12.78 Kharba in fiscal year 2074/75, the budget has grown steadily, reaching Rs. 19.64 Kharba in 2082/83, a rise of nearly 54% over nine years. This growth, while not always linear, tells a story of an economy trying to expand its fiscal footprint year after year.
The journey has not been without its bumps. After a modest budget of Rs. 12.78 Kharba in 2074/75, the government scaled up to Rs. 13.15 Kharba the following year. What stands out is the notable jump to Rs. 15.32 Kharba in 2076/77, followed by a slight pullback to Rs. 14.74 Kharba in 2077/78, a rare instance of a year-on-year reduction, likely reflecting fiscal caution during a period of global economic stress, particularly the disruptions caused by the COVID-19 pandemic. The government then recalibrated and pushed forward, with the budget climbing to Rs. 16.47 Kharba in 2078/79.
The period between 2079/80 and 2082/83 saw some of the most interesting fiscal movements. The 2079/80 budget came in at Rs. 17.93 Kharba, notably higher than the following year's Rs. 17.51 Kharba in 2080/81, suggesting a deliberate effort to tighten spending, possibly in response to revenue shortfalls or pressure to rein in borrowing. However, the government reversed course strongly in 2081/82, allocating Rs. 18.60 Kharba, and further stepped it up to Rs. 19.64 Kharba in 2082/83, the largest budget recorded in this ten year window.
| Budgets of the Last 10 Fiscal Years | |||
| S.N | Fiscal Year | Budget Amount (in kharba) | Budget Amount (in Words) |
| 1 | 2082/83 | 19.64 | 19 Kharba 64 Arba 11 Crore |
| 2 | 2081/82 | 18.60 | 18 Kharba 60 arba 30 Crore |
| 3 | 2080/81 | 17.51 | 17 kharba 51 arba 31 Crore |
| 4 | 2079/80 | 17.93 | 17 Kharba 93 arba 83 Crore |
| 5 | 2078/79 | 16.47 | 16 Kharba 47 Arba 57 Crore |
| 6 | 2077/78 | 14.74 | 14 Kharba 74 Arba 64 Crore |
| 7 | 2076/77 | 15.32 | 15 Kharba 32 arba 96 Crore |
| 8 | 2075/76 | 13.15 | 13 Kharba 15 Arba 16 Crore |
| 9 | 2074/75 | 12.78 | 12 Kharba 78 Arba 99 Crore |
| 10 | 2073/74 | 10.48 | 10 Kharba 48 Arba 92 Crore |
Key Insight
Looking across the full decade, a few conclusions stand out clearly. First, Nepal's budget has more than doubled in ambition over ten years, but ambition on paper and delivery on the ground remain two different things. The consistent challenge has been the gap between what is allocated and what is actually spent, particularly on capital projects.
The reliance on loans, both foreign and domestic, to finance the budget has grown alongside the total size. This makes the revenue collection figures in each new budget particularly critical. A strong revenue performance reduces the need for borrowing and puts the country on a more sustainable fiscal path.
Minister Wagle repeatedly said that this fiscal year budget is for the economic transformation and for the developments, Private sector will be prioritize the most, to boost the economy. Looking back to the decade's budget reflects good growth in the size of the economy but in reality Nepal has not achieve any economic transformation. The new Government has the vision, Minister Wagle has the idea to transform the country's economy but all depends on this year budget allocation to the each sector.
