Kathmandu, Nepal — Nepal’s House of Representatives witnessed heated exchanges this week as the government unveiled its highly anticipated federal budget proposal for the upcoming fiscal year. The debate, which stretched late into the night, showcased the deep political divides between the ruling coalition and the opposition, raising questions about the nation’s economic priorities and development trajectory.
The Finance Minister presented the Rs. 1.8 trillion proposal, describing it as a “balanced approach to growth, development, and stability.” According to the government, the budget emphasizes infrastructure development, federalism implementation, and social security expansion. Key highlights include increased allocations for health and education, plans for new hydropower projects, and funding for provincial-level road connectivity.
However, opposition lawmakers sharply criticized the proposal, accusing the government of drafting a “populist document” designed to win short-term approval rather than address structural economic challenges. Critics argue that while the budget looks ambitious on paper, it lacks clarity on revenue generation and could deepen the country’s fiscal deficit.
Opposition’s Strong Words
During the session, leaders of the main opposition party called the budget “a missed opportunity.” They pointed out that unemployment remains high and that the youth continue to migrate abroad for work. “The government is talking about prosperity while ignoring the reality of mass outmigration,” said one opposition leader, urging immediate focus on job creation within Nepal.
Government’s Defense
In response, the Prime Minister defended the proposal, insisting that it reflects the coalition’s long-term vision for a self-reliant Nepal. “We are laying the foundation for an economy that invests in people, values social equity, and builds a modern infrastructure base,” he said. The Prime Minister also highlighted the inclusion of new startup funding programs aimed at encouraging young entrepreneurs to remain in the country.
Public Reaction and Expert Opinion
Outside parliament, public response has been mixed. Some civil society groups praised the increased allocation for education and healthcare, especially after the hardships experienced during the pandemic. Teachers’ associations welcomed commitments to digitalize schools and upgrade rural education facilities, while doctors’ groups appreciated the funding promised for regional hospitals.
On the other hand, business groups expressed disappointment, claiming the budget does little to address liquidity shortages and banking sector instability. Economists, too, voiced skepticism about the government’s revenue targets, especially since tax collection has repeatedly fallen short in recent years. “The mismatch between expenditure plans and realistic revenue sources could push Nepal toward greater borrowing,” one economist noted.
Federalism Challenges
Another major point of contention in parliament was the distribution of resources to provinces. Provincial leaders have long complained about insufficient financial autonomy, and several MPs echoed these frustrations, warning that the current model of resource allocation risks undermining federalism. The Finance Minister, however, argued that the new proposal strengthens provincial governments by ensuring funds for local development projects.
What Comes Next?
The parliamentary debate is expected to continue throughout the week, with various committees scheduled to review sectoral allocations. Amendments are likely, particularly in areas related to agriculture subsidies, energy projects, and social security programs.
Observers say the final outcome will depend on how effectively the ruling coalition can negotiate with smaller parties. Given the fragile nature of coalition politics in Nepal, the possibility of compromises and last-minute changes remains high.
Conclusion
For ordinary citizens, the political wrangling has become a familiar scene, yet the stakes remain significant. The new budget will directly influence everyday life—from the price of essential goods to the quality of public services. As the debate unfolds, people across the nation are waiting to see whether the promises made in parliament will translate into meaningful change on the ground.
