One Budget Cannot Solve Decades-Old Problems: Finance Minister Swarnim Wagle

Finance Minister Swarnim Wagle has said that expecting a single national budget to solve problems that have persisted in Nepal for decades is unrealistic.

Speaking at a policy dialogue program in Kathmandu on Monday regarding the fiscal year 2083/84 budget, Wagle said the government introduced the budget amid pressure related to limited resources, time constraints, and growing public expectations. He noted that nearly 70 percent of budget allocations are already predetermined based on mandatory expenditures and resource management, making it impractical to expect sweeping solutions through one budget alone.

“The expectation that one budget can resolve decades-old structural problems is not practical,” Wagle said, adding that even policymakers may have contributed to creating such public expectations.

The finance minister also stated that the government had undertaken one of the most extensive tax structure reforms in the past three decades. However, he acknowledged that time limitations prevented the reforms from being implemented in a more refined and mature manner.

According to Wagle, the government attempted to honor its election commitment to reduce the overall tax burden. He stressed that while the budget can create the foundation for strategic investments and economic reforms, sustainable economic growth will ultimately depend on stronger participation from the private sector.