“Not on Debt, but on Our Own Income”: Finance Minister Wagle Unveils New Economic Vision

Finance Minister Dr. Swarnim Wagle has said that the government has introduced the new budget with the vision of building Nepal through its own income rather than relying heavily on debt. Speaking while inaugurating the annual review program of the District Coordination Committee, Tanahun, during his visit to his electoral constituency, Wagle said the government is working to break the longstanding trend of borrowing to meet essential day-to-day state expenses. He said the government aims to broaden the tax base, increase revenue through wider participation, and use domestic resources to finance development. Wagle noted that Nepal’s financial capacity remains below the level of public expectations for development, while loans from development partners have also become more expensive, making it increasingly necessary for the country to become financially self-reliant. He pointed out that the government currently faces regular and essential obligations of around Rs. 1,350 billion, while its revenue stands at only around Rs. 1,250 billion, highlighting the gap between income and expenditure. According to him, the expansion of the tax base and incentives for tax compliance are intended to address this imbalance. He also urged the public to move beyond the expectation of avoiding both taxes and borrowing while still demanding extensive development. Wagle assured that the government would work to address concerns arising from the expansion of taxation and protect the public from undue final tax burdens. He further said the government’s Rs. 2.124 trillion budget seeks to energize the private sector and help mobilize the economy, which currently stands at around Rs. 6.6 trillion. The government is also preparing to create a more favorable environment for Nepali citizens living abroad to invest in Nepal, he added.