KATHMANDU: The government has unveiled a hefty budget of Rs 2.124 trillion for the upcoming fiscal year 2026/27. While it’s larger than previous budgets, many feel it doesn’t focus enough on the everyday issues that affect ordinary citizens. During a recent session in Parliament, Finance Minister Dr. Swarnim Wagle highlighted several urgent matters—such as climate change and mental health—that were mentioned earlier but have now been sidelined.
Past budgets have also struggled to address these pressing challenges. Even the newly formed Rastriya Swatantra Party (RSP), which aimed to bring about positive change, has not prioritized these issues in its recent budget allocation.
Experts warn that climate risks are on the rise. For instance, the melting of Himalayan glaciers has led to increased flooding and landslides, causing extensive damage and loss of life. According to climate expert Ngamindra Dahal, addressing these issues requires a coordinated approach across various sectors. He emphasizes that real change depends on the government’s ability to implement comprehensive programs, not just funds.
The budget vaguely mentions building climate-resilient structures but falls short in concrete details. An amount of Rs 1 billion is earmarked for water conservation projects, a fraction of what experts believe is needed. For true progress, more funding is essential; the budget for climate change adaptation has decreased to Rs 10.75 billion, down from Rs 13.25 billion last year.
After a devastating earthquake, promises were made to expedite housing for victims, but specifics are lacking. Similarly, although there are intentions to combat forest fires with new technology, experts like Bhupendra Das argue that information alone won’t suffice—effective firefighting capabilities are essential.
The government has allocated Rs 3.17 billion to clear landslide debris from highways, yet comprehensive disaster management programs remain scarce. Researcher Dinabandhu Bhandari points out that emergency management funding has been reduced, as the home ministry’s budget has been cut significantly.
Air quality in Nepal is a critical issue, causing more than 41,000 deaths yearly according to the ‘State of Global Air 2025’ report. Despite this, the budget has done little to tackle it. While there’s talk of improving air quality monitoring, experts argue that more action is needed, such as enforcing regulations on petroleum-based vehicles, which significantly contribute to pollution.
On the mental health front, while the health budget is sizable, specific allocations to address mental health issues are absent. Dr. Basudev Karki notes that while provincial budgets may contribute, the lack of focus at the federal level is concerning.
The budget does offer some positives, like Rs 800 million for irrigation projects to aid farmers in hilly regions affected by drought. However, there are no plans to control monkey populations, which are damaging crops.
To foster sustainable development, the government aims to enhance forest management and promote green enterprises. This includes streamlining regulations for the timber industry to support local businesses.
There are also new initiatives, like a tax on electric vehicle battery management. This is a first for Nepal and reflects a move towards more inclusive policies, such as education initiatives for children with disabilities and support for gig workers.
In sum, while this budget introduces some forward-thinking policies, it remains to be seen if it will effectively address the urgent needs of the population and the environment.
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