2nd June 2025, Kathmandu
Nepal’s Finance Minister Bishnu Prasad Paudel has underscored the critical need for increased effort to achieve the ambitious revenue target of NPR 1.315 trillion for the upcoming fiscal year 2082/83.
Bishnu Paudel on Nepal’s 2082
Speaking at a post-budget discussion organized by the Nepal Economic Journalists Association (NAFIJ) in Kathmandu, Paudel acknowledged the challenge but maintained that the goal is attainable through diligent work.
The government unveiled a national budget of NPR 1.964 trillion on May 28, 2025 (Jestha 15, 2082 BS), setting a target of 6% economic growth. Minister Paudel emphasized that the budget was formulated on sound principles, ensuring prudent resource management and fiscal discipline. “We can’t reach goals without working. With effort, we can achieve our targets,” he stated.
Implementation and Policy Reforms
Finance Minister Paudel asserted the budget’s realism and implementability, stressing that proper guidelines were followed during its formulation and resource allocation was based on meticulous planning. He vowed to prevent end-of-fiscal-year criticisms stemming from poor performance.
Dr. Shivraj Adhikari, Vice Chair of the National Planning Commission, highlighted improvements in budget allocation practices, noting the exclusion of projects costing under NPR 30 million from central budgeting. This, he explained, aims to reduce unnecessary budget fragmentation and streamline the process.
Dr. Adhikari also admitted to facing significant pressure during budget formulation, particularly due to political changes and debt concerns, but affirmed that the budget incorporates important policy reforms derived from detailed research.
Mixed Reactions and Sectoral Views
The budget has elicited varied responses from key stakeholders.
Former Finance Minister’s Criticism: Former Finance Minister and current MP Janardan Sharma criticized the budget, estimating a surplus of NPR 400 billion. He projected government spending to be closer to NPR 1.5 to 1.6 trillion, significantly less than the announced amount. While acknowledging some positive policy steps, Sharma called for further scrutiny. “There are positive aspects, but the critical review is necessary,” he said. “Continuity in economic structure and expansion is good, but not enough.”
Private Sector Optimism: Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), hailed the policy allowing Nepalese to invest abroad as a historic step that supports private sector growth. He urged the government to remain steadfast in its bold decisions. “Implementation and effective resource mobilization are now key,” Dhakal stressed.
Kamlesh Kumar Agrawal, President of the Chamber of Commerce, described the budget as ambitious given the current economic climate. He lauded the focus on IT and technology and welcomed the provision of youth loans up to NPR 2 million at 3% interest, viewing it as a positive step to reduce youth migration.
Industrial and Construction Sectors: Bishnu Agrawal, former president of the Confederation of Nepalese Industries (CNI), believes the budget will attract investments but emphasized the need to increase production to meet revenue targets. “Revenue growth depends on production and investment,” he stated.
Ravi Singh, President of the Federation of Contractors’ Associations of Nepal, found the budget favorable for the construction sector, urging the government to spend at least 90% of capital expenditure. While welcoming the goal to complete national pride projects within two years, he criticized the budget for not addressing stalled projects and suggested incentives for their revival.
Auto and Energy Sector Views: Karan Chaudhary, President of the NADA Automobiles Association of Nepal, expressed satisfaction, noting that the budget has created momentum in the auto industry.
However, the Independent Power Producers’ Association Nepal (IPPAN) voiced concerns, criticizing the “take-and-pay” model in the power purchase agreement, which they believe will negatively impact the construction of projects exceeding 17,000 MW. Delays in IPO approvals were also cited as contributing to capital shortages in hydropower development.
Digital Economy and Financial Sector: Guru Prasad Paudel, Executive Director of Nepal Rastra Bank, highlighted that the removal of VAT on digital payment service charges will promote the digital economy. He added that the budget includes steps to improve the financial sector and announced plans to explore digital banking within the next five years, emphasizing the need for basic infrastructure.
Economist’s Perspective: Economist and former NPC member Dr. Ramesh Paudel praised the budget for being private-sector friendly but criticized the lack of transformative policies despite strong political backing. He highlighted that over half of Nepal’s economy is informal, emphasizing the need to formalize this sector to increase tax revenue. Dr. Paudel also pointed out Nepal’s weak capital expenditure, with only 5% of GDP allocated to development activities. “We must pay attention to increasing effective spending,” he urged.
Conclusion
While the 2082/83 budget has garnered mixed reactions, there is a consensus that it contains several progressive measures. Its ultimate success, however, will be contingent on proper implementation, effective investment mobilization, and diligent efforts to address existing policy gaps.
As stakeholders continue to advocate for reforms and decisive action, the upcoming fiscal year could prove to be a pivotal period for Nepal’s economic transformation.
For more: Bishnu Paudel on Nepal’s 2082