Parliamentary agenda
The budget session of Nepal's federal parliament is now underway, with the government scheduled to present the principles and priorities of the upcoming budget to lawmakers. This marks the first full budget under the post-election alignment, giving the new majority an opportunity to translate its campaign themes into concrete fiscal commitments. ## Economic backdrop
According to the Asian Development Outlook, Nepal's growth is forecast to slow to around 2.7 percent in fiscal year 2026, down from an estimated 4.6 percent in 2025, as political uncertainty, weather-related shocks, and external headwinds weigh on activity. Earlier ADB assessments had anticipated a moderate strengthening of growth to 4.4 percent in fiscal 2025 from 3.9 percent in 2024, but those projections predated the full impact of the 2025 protests and early election. ## Policy implications
The budget will have to reconcile rising expectations for youth employment programmes, digital infrastructure, and social protection with limited revenue growth and existing commitments, including federal transfers to provinces and debt servicing. Choices on tax reform, capital spending quality, and governance safeguards around big projects will signal whether the administration prioritises long-term structural change or short-term distributive measures.