Finance Minister to Unveil White Paper on Economy

The government is preparing to make public a white paper detailing the country’s economic situation, Finance Minister Dr. Swarnim Wagle announced.

Following his assumption of office on March 27, Minister Wagle had decided to prepare the "White Paper on Economic Situation" within five days, covering the period up to the day before he took charge.

According to ministry officials, the white paper aims to present the true state of the national economy and lay a concrete foundation for reforms and the upcoming budget.

“Preparations are underway to release it on Sunday,” a source close to the minister said.

In the past, economic data was often selectively presented to criticise the previous government’s performance, drawing accusations of bias. The source claimed the new government would present an accurate picture of the economic situation.

The economy has been expanding at a slower pace in recent years, with limited economic opportunities. A government with nearly a two-thirds majority now faces the challenge of accelerating economic growth.

Adding to the difficulties, ongoing conflict in West Asia involving the United States, Israel, and Iran has disrupted oil supplies and could impact remittance flows. Meanwhile, government spending remains low as usual.

According to the Ministry of Finance, by March 26, the government had collected Rs 780.12 billion in revenue—a 4.74 percent increase compared to Rs 744.80 billion collected in the corresponding period in the previous fiscal year.

The Financial Comptroller General Office reported total budget expenditure of Rs 967.45 billion by March 26, representing 49.26 percent of total appropriations. Capital expenditure stood at just 20.55 percent, with only Rs 83.81 billion spent out of a capital budget of Rs 407.88 billion.

Ministry officials said the white paper will also address the recent tensions in West Asia, which pose a significant challenge for the government.

Budget Drafting Committee Activated

The Budget Drafting Committee, formed by Finance Minister Wagle to prepare the budget for fiscal year 2026/27, has begun its work.

The committee is tasked with setting budget principles and priorities and drafting the budget statement to be presented by the finance minister to the federal parliament. Work commenced on Friday, said Joint Secretary Tanka Prasad Pandey.

“The committee has been entrusted with suggesting annual policies and programmes for the upcoming fiscal year, facilitating prioritisation of implementable projects and programmes, and drafting principles and priorities for the Appropriation Bill to be presented in both houses of parliament,” Pandey said.

The budget is being drafted taking into consideration the election manifesto of the Rastriya Swatantra Party (RSP). It will incorporate plans to abolish or restructure certain government bodies included in the government’s action plan and allocate sufficient budget for projects nearing completion.

The Budget Drafting Committee is coordinated by Uttam Kumar Khatri, chief of the Revenue Management Division at the Ministry of Finance. Members include Dr. Suman Dahal (Budget and Programme Division), Dr. Dhaniram Sharma (International Economic Relations Division), Mahesh Bhattarai (Economic Policy Analysis Division), and Sebantak Pokharel (Fiscal Federalism Coordination Division).