Finance Minister Dr. Swarnim Wagle has expressed confidence that Nepal’s Gross Domestic Product (GDP) will increase to Rs 7.458 trillion following the implementation of the budget for Fiscal Year 2026/27.
Speaking at an interaction program organized by the Nepal Association of Financial Journalists (NAFJ), Minister Wagle said the upcoming budget has been formulated with a five-year development perspective in mind. He also noted that the government has set a target of collecting approximately Rs 1.6 trillion in revenue during the next fiscal year.
According to the Finance Minister, achieving a GDP of Rs 7.458 trillion would enable Nepal to attain an economic growth rate of around seven percent.
Government Stands Firm on Electricity VAT
Minister Wagle reiterated that the government will not reverse its decision to impose Value Added Tax (VAT) on electricity consumption exceeding 50 units per month.
He argued that consumption-based taxation is a more effective policy tool than income-based taxation and stated that the government has prioritized programs that are practical and achievable.
Sustainable Foreign Currency Reserves Require Strong Exports
Speaking at the same event, Nepal Rastra Bank Executive Director Guru Poudel highlighted that remittances remain the primary source of Nepal’s foreign exchange reserves. However, he stressed that long-term sustainability of foreign currency reserves will depend on increasing domestic production and expanding exports.
Business Leaders Welcome Budget
Representatives of major business organizations welcomed the government’s budget while emphasizing the importance of effective implementation.
Among those expressing support were:
- Kamalesh Agrawal, President of the Nepal Chamber of Commerce
- Birendra Pandey, President of the Confederation of Nepalese Industries
- Naresh Lal Shrestha, Vice-President of the Federation of Nepalese Chambers of Commerce and Industry
- Menuka Karki, President of the Nepal Association of Financial Journalists (NAFJ)
The speakers generally viewed the budget positively and urged the government to focus on efficient execution to achieve its economic objectives.
