Nepal budget raises civil servant salaries by 21%, boosts spending on sports and health

Nepal's Finance Minister Swarnim Wagle unveiled a budget for fiscal year 2026-27 that prioritizes government employee welfare and boosts spending across key sectors. A significant 21 percent salary increase for civil servants aims to address inflation, which has risen by 17.3 percent over the past four years.

The budget introduces a broad package of measures, including enhanced health insurance funding, the establishment of air ambulance services in remote Karnali Province, and increased allowances for nursing staff and female community health volunteers. Social welfare initiatives include allocations for the Ministry of Women, Children, Gender and Sexual Minorities, and nutrition support for Dalit children under five. Athletes winning international medals will receive free lifetime healthcare.

In sports, the government plans to identify and train talented students from a young age and invest heavily in infrastructure. Modern cricket stadiums are slated for eight major cities, and indoor multipurpose stadiums will be built in several locations. At least 10 football stadiums will be upgraded with floodlights within three years. The budget also earmarks funds for entrepreneurship development programs for those injured during the Gen-Z movement, with martyrs' families receiving financial assistance and the injured getting free treatment and monthly allowances.

Cultural heritage preservation is also a focus, with efforts to nominate Tilaurakot, Janakpur, and Gokarneshwar for UNESCO World Heritage status. Additionally, a project will conserve over two dozen ancient monasteries in Mustang and Manang. The budget allocates substantial funds for completing transmission lines and substations, and prioritizes the upgrade of the Khutiya-Dipayal fast track road.