The government is expected to generate revenue worth Rs 1.263 trillion in the next fiscal year, a figure similar to the projection for the current fiscal year.
While setting the budget ceiling for FY 2025/26, the National Resource Estimates Committee of the National Planning Commission (NPC) projected government revenue for the upcoming fiscal year. Initially, the government had estimated revenue collection of Rs 1.2603 trillion for the current FY, but this was later revised down to Rs 1.1452 trillion through the mid-term budget review.
A major challenge for the government now is securing financial resources amid rising liabilities, particularly for debt management. According to government records, Nepal’s total debt burden has exceeded Rs 2.611 trillion, with public debt reaching 45.77% of the country’s gross domestic product (GDP).
For FY 2025/26, the NPC has set a budget ceiling of Rs 1.965 trillion, marking an increase of approximately Rs 100 billion from the current fiscal year’s expenditure. Of this, Rs 1.263 trillion is expected to come from government revenue, while the remaining Rs 637.55 billion will be covered through internal borrowings and external loans. Specifically, the NPC estimates that Rs 45 billion will come from foreign grants, Rs 235.09 billion from foreign loans, and Rs 357.46 billion from internal borrowing.
For the current FY, the government had projected Rs 330 billion from internal loans, Rs 217 billion from external loans, and Rs 52.3 billion from foreign grants.
Amid growing economic constraints, the government has reiterated its commitment to implementing a realistic budget rather than a populist one. NPC Vice-Chairperson Shiva Raj Adhikari emphasized that the projected revenue for the upcoming budget is only 10% higher than the revised revenue target set in the mid-term review, signaling an effort to maintain fiscal discipline.
Following the NPC’s budget ceiling recommendation, the government has issued guidelines directing line ministries to prioritize projects registered in the project bank while discouraging new projects lacking feasibility studies. Additionally, it has pledged to allocate funds for essential expenditures while enforcing strict austerity measures leading up to the budget announcement on May 29.
