Nepal unveils $13.8 bn reform budget after political shift

Nepal's government unveiled on Friday a record $13.8 billion budget for fiscal year 2026-27, marking the first fiscal plan under Prime Minister Balendra Shah's new administration. Driven by recent political shifts, the budget focuses on economic revival, infrastructure expansion, and transforming Nepal into a regional tech and AI hub.

Finance Minister Swarnim Wagle projected that the reforms will boost economic growth to 7% while keeping inflation around 6%. In April, the World Bank said better political stability and progress in structural reforms could boost investor confidence in Nepal.