Rs2.12 trillion budget appeases middle class, banks on growth despite debt concerns

Wagle unveils sweeping tax reforms, privatisation plans and major infrastructure targets, but critics question the record borrowing and feasibility of achieving 7 percent growth amid economic fragility.

The new government under the Balendra Shah administration on Friday unveiled an ambitious Rs2.12 trillion annual financial plan for the fiscal year 2026-27, beginning mid-July, prioritising infrastructure expansion, structural reforms and tax overhauls despite mounting resource constraints and growing concerns over debt sustainability.