Budget prioritises roads, health, education and energy projects

Nepal's Finance Minister Swarnim Wagle unveiled the budget for fiscal year 2026-27, highlighting significant investments in infrastructure, health, and education. A major infrastructure milestone is the upcoming operation of the Nagdhunga-Sisnekhola tunnel by mid-July, with construction nearing 98% completion.

“

the Nagdhunga-Sisnekhola tunnel project would come into operation from mid-July, with 98 percent of construction work already completed.

The health sector will see expanded burn treatment services at Bir Hospital and Kirtipur Hospital, alongside a pledge of free childhood cancer treatment at government facilities. The budget also aims to produce 25 types of currently free medicines within Nepal and increase health insurance coverage to 90% of citizens within three years. Furthermore, the quota system for higher education in fields like medicine and IT will be reviewed.

“

Nepalis working abroad would be allowed to study through the Open University system.

Infrastructure development is a central theme, with Rs1.46 billion allocated to blacktop 25 kilometers of the Madan Bhandari Highway and construct associated bridges. The government also plans to connect 650 megawatts from hydropower and 370 megawatts from solar projects to the national grid, boosting total installed capacity to 5,535 megawatts. A study will be conducted to bring drinking water to Kathmandu from the Yangri and Larke rivers, with Rs37.17 billion allocated for the water sector.

“

education from school to university level would be made more innovation-and skill-oriented, while teachers would undergo competency assessments.

Road construction remains a priority, with Rs286.48 billion designated for roads and urban development. The Pushpalal Mid-Hill Highway upgrade and completion of five bridges will receive Rs2.16 billion, while the Postal Highway project is allocated Rs4.65 billion. The government also plans to introduce "Blue Buses" with CCTV cameras for safer women's travel and establish a "Fintech Marketplace" under Nepal Rastra Bank's supervision to promote the financial technology sector.

“

670 megawatts from hydropower projects and 370 megawatts from solar projects would be connected to the national grid, raising the country’s total installed capacity to 5,535 megawatts.