Wagle’s ‘audacious’ budget and controversy that followed

Nepal's new government, led by Prime Minister Balendra Shah, has embarked on a path of breaking established norms since its formation after the March 5 elections. While promising an end to corruption and good governance, the administration has already made significant changes, including a controversial federal budget.

One notable shift is the end of the tradition of appointing the seniormost Supreme Court justice as Chief Justice. The Constitutional Council recommended Manoj Kumar Sharma, ranked fourth, for the position, breaking a long-standing practice often influenced by political power-sharing. Prime Minister Shah, popularly known as Balen, has also tackled the persistent squatter issue. His administration is clearing illegal settlements on public land and plans to resettle genuine landless squatters within two years, a move that contrasts with previous governments' inaction.

Amid these changes, Finance Minister Swarnim Waglé's federal budget for fiscal year 2026-27 has become a focal point of debate. While the budget aimed for a departure from past practices and included measures to trim excess government spending, such as abolishing or merging 31 government entities, allegations of wrongdoing against Waglé have overshadowed these discussions.

The budget itself reflects a complex approach, attempting to break norms while continuing some old practices. For instance, it maintains funding for ongoing infrastructure projects initiated by previous governments. Efforts were also made to right-size recurring expenditures, which consume a significant portion of the national budget.

Despite the controversies, the government's actions signal a willingness to challenge the status quo. The breaking of norms, as seen in judicial appointments and land settlement policies, suggests a leadership determined to implement its agenda, though the financial controversies present a significant challenge to its governance promises.