Summary: Swarna Shamsher presented Nepal’s first-ever budget on 21 Magh 2008 BS (1962). Then Finance Minister Bharat Mohan Adhikari, through the fiscal year 2051/52 budget, introduced social security allowances and the ‘Build Your Own Village’ program. State Minister for Finance Mahesh Acharya implemented economic liberalization and open market policies during the fiscal year 2048/49 budget. Kathmandu, 12 Jestha — Before Finance Minister Dr. Swarnim Wagle addressed questions related to the policy and program for the upcoming fiscal year 2083/84 or discussed concerns on the principles and priorities of the appropriation bill, he often recalled the budget presented by Swarna Shamsher on 21 Magh 2008 BS, recognized as Nepal’s very first budget.
When opposition members criticized the budget with traditional connotations, Minister Wagle responded, “The terms regarding the budget remain the same as those included in Swarna Shamsher’s budget in 2008 BS.” He did not consider criticism arising solely from terminology logical, emphasizing that policy improvement requires more than just words.
Since the 2008 BS budget, Nepal has witnessed few historic budgets marking significant economic shifts. Ahead of today’s new budget presentation, this article reviews seven landmark budgets from the past 75 years that have shaped Nepal’s economic history. While political climates have provided opportunities to finance ministers like Wagle to introduce vital budgets, how they leverage these opportunities remains to be seen.
2008 BS: Nepal’s First Official Budget
Presented by Swarna Shamsher on 21 Magh 2008 BS, this budget was Nepal’s first official fiscal plan. Under Rana rule, governance was limited, and financial matters remained obscure. After democracy was established in 2007 BS, Swarna Shamsher noted in the budget that due to democratic and accountable governance, the nation and the world could now access information on national revenue and expenditures. Being the first democratic finance minister, he expressed pride in presenting this historic budget.
The budget estimated revenue at NPR 2.9 crore and expenditures at NPR 2.46 crore in 2007 BS. The total size was NPR 5.25 crore, with expected revenue of NPR 3.05 crore. This budget represents a pioneering step in granting economic autonomy to the people previously exploited under the Rana regime and remains engraved in Nepal’s history in golden letters.
2016/17 BS: The First Budget by an Elected Government — Initial Tax Identification
The first budget introduced by an elected government came in 2016/17 BS. Then Deputy Prime Minister and Finance Minister Swarna Shamsher presented the budget to parliament on 25 Shrawan 2016 BS. The budget highlighted that despite democracy, political instability over the prior 7–8 years had not significantly improved living standards. During this period, Nepal’s five-year plans had also commenced. This budget marked the government’s first imposition of income tax, targeting business profits and wages. The BP Koirala-led administration also imposed land revenue taxes. The budget size stood at NPR 24.89 crore, prioritizing agriculture, drinking water, rural development, and commerce.
2041/42 BS: Liberal Financial Policies — Opening the Door to Private Banks
On 26 Asar 2041 BS, Finance Minister Dr. Prakash Chandra Lohani unveiled a historic budget embracing liberal financial policies for 2041/42 BS. This budget announced private sector-friendly initiatives. Confronting inflation, declining foreign exchange reserves, and economic challenges, Dr. Lohani advocated policies encouraging financial sector competition through new bank establishments. The budget included amendments to the Commercial Bank Act, facilitation of finance company formation, and mandatory investment in agriculture. The budget size was NPR 680 crore.
2048/49 BS: Economic Liberalization and Open Market Economy Policies
Presented on 27 Asar 2048 BS by State Minister for Finance Mahesh Acharya under the leadership of Girija Prasad Koirala, this budget was a significant document for economic liberalization. It promoted increased private sector involvement and encouraged private development in sectors such as trade, electricity, banking, aviation services, and media. The budget initiated reductions in public sector investments through privatization and management reforms. Permissions were granted for private finance companies and commercial banks, and foreign exchange provisions were eased. The budget totaled NPR 2.664 billion.
2051/52 BS: Social Security and the ‘Build Your Own Village’ Initiative
The fiscal year 2051/52 budget was presented twice: initially on 31 Asar by Mahesh Acharya and later resubmitted by the minority UML-led government on 11 Poush by Bharat Mohan Adhikari as a supplementary budget. This budget sloganed making villages centers of development and adopted a policy of directly allocating budgets to Village Development Committees. As a pilot for social security, relief programs for senior citizens began in five districts and were expanded the following year to provide monthly allowances for citizens over 75 in 75 districts. This budget also initiated legal reforms to optimize public resource use and improve project implementation. The budget size was NPR 4.269 billion.
2065/66 BS: Ambitious Budget and ‘Leap in Economic Growth’
After the 2062/63 BS (2005/06 AD) popular movements, Dr. Baburam Bhattarai, from the first elected government following the movement, presented the ambitious budget for 2065/66 BS. He stated that “some risks must be taken to leap from one era to another.” This budget set a target for producing 10,000 megawatts of electricity for the first time. It called for establishing an investment board and declared that former royal assets would be utilized for public benefit. Social security allowances were categorized, and policies for various communities were introduced. Emphasizing infrastructure development and equalizing employee salaries, the budget size was NPR 23.6 billion, significantly larger than previous ones.
2072/73 BS: Ram Sharan Mahat’s ‘World’s Best Finance Minister’ Budget
Amid post-2015 earthquake recovery, Finance Minister Dr. Ram Sharan Mahat introduced the 2072/73 fiscal budget. Procuring aggressive international commitments totaling $400 million through conferences, he steered rapid reconstruction efforts. The budget symbolized not only recovery but also the expansion of financial inclusion and promotion of investment. A National Reconstruction Fund was established, with NPR 7.4 billion allocated. Financial assistance for private housing construction was introduced, along with announcements for investment conferences. The budget amounted to NPR 8.19 billion.
