Experts and stakeholders have urged the government to focus on restoring private sector confidence by ensuring financial transparency, addressing rising public debt, and strengthening good governance in the upcoming budget for the fiscal year 2025/26.
The suggestions were presented during a pre-budget discussion organized by the Management Association of Nepal (MAN) on Saturday. The event comes as the government prepares to unveil the national budget on May 29 amid economic challenges such as sluggish credit flow, high youth out-migration, weak capital spending, and growing debt burdens.
Despite recent improvements in Nepal’s economic indicators—such as a positive balance of payments and rising foreign reserves—MAN President Mohan Raj Ojha noted that key fundamentals remain weak. He highlighted that bank credit growth relative to GDP is unsatisfactory and the rising public debt has not translated into measurable economic growth.
Government projections indicate Nepal’s GDP will reach Rs 6.17 trillion by mid-July 2025, with a growth rate of only 4.61 percent. However, public debt has surged from Rs 2.434 trillion to Rs 2.676 trillion within the first eight months of the current fiscal year. As a result, the debt-to-GDP ratio has climbed to 46.91 percent from 42.65 percent, and per capita debt now stands at Rs 91,756—up from Rs 83,000.
To support economic recovery, MAN recommended that the government allocate at least six percent of GDP to infrastructure development. The association also suggested developing budget-related mobile applications to promote transparency in project selection and implementation.
Shova Gyawali, President of the Federation of Women Entrepreneurs’ Associations of Nepal, called for provisions in the budget to directly benefit women entrepreneurs by supporting skills development and improving market access for women-led products.
Ambika Prasad Paudel, Chair of the Tax and Revenue Committee at the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), emphasized the need to resolve issues related to the Revenue Tribunal and reform the tax system.
Additional suggestions included enabling Non-Resident Nepalis (NRNs) to invest in Nepal’s stock market, offering tax holidays to new businesses, implementing consistent policies in the automobile sector, and expanding support for SMEs and IT-related ventures.
