The federal budget for FY 2083/84 (2026/27) is Nepal’s largest ever. Questions on budget size, allocation and financing appear in almost every Lok Sewa exam, from Kharidar to Section Officer.
Budget 2083/84: Basic Facts
| Presented on | Jestha 15, 2083 BS (29 May 2026) |
| Presented by | Finance Minister Dr. Swarnim Wagle |
| Total size | Rs 2,124.34 billion (about Rs 2.12 trillion) |
| Growth | About 25% above the revised estimate of FY 2082/83 |
| Economic growth target | 7% |
Remember: Under Article 119 of the Constitution of Nepal, the federal budget must be presented on Jestha 15 every year.
Expenditure Allocation
| Heading | Amount | Share |
|---|---|---|
| Current (recurrent) expenditure | About Rs 1,270 billion | 59.8% |
| Capital expenditure | Rs 431.1 billion | 20.3% |
| Financial management | About Rs 422 billion | 19.9% |
Sources of Financing
| Source | Amount |
|---|---|
| Revenue (tax and non-tax) | Rs 1,405 billion |
| Foreign grants | Rs 61.74 billion |
| Foreign loans | Rs 247.28 billion |
| Domestic borrowing | Rs 410 billion |
| Deficit (covered by loans) | Rs 657.29 billion |
Personal Income Tax Changes (FY 2083/84)
The budget made the biggest change to personal income tax in years. Two points are asked most often:
| Item | Before (FY 2082/83) | FY 2083/84 |
|---|---|---|
| First income slab | Up to Rs 5 lakh (individual) | Up to Rs 10 lakh |
| Tax on the first slab | 1% social security tax | 1% social security tax (unchanged) |
| Highest rate | 39% | 29% |
Income tax slabs for a resident individual, FY 2083/84:
| Annual taxable income | Rate |
|---|---|
| Up to Rs 10,00,000 | 1% (social security tax) |
| Rs 10,00,001 – 15,00,000 | 10% |
| Rs 15,00,001 – 25,00,000 | 20% |
| Rs 25,00,001 – 40,00,000 | 27% |
| Above Rs 40,00,000 | 29% |
Worked example: taxable income Rs 18 lakh → 1% of 10 lakh (Rs 10,000) + 10% of 5 lakh (Rs 50,000) + 20% of 3 lakh (Rs 60,000) = Rs 1,20,000.
Common mistake: the first Rs 10 lakh is not completely tax-free. Every rupee earned up to Rs 10 lakh still pays 1% social security tax (सामाजिक सुरक्षा कर). For example, a person earning Rs 9 lakh a year pays Rs 9,000 (1% of 9 lakh). The normal income-tax rates start only on income above Rs 10 lakh. People who contribute to the Social Security Fund under the contribution-based scheme do not pay this 1% separately, because their contribution covers it.
Tax rates are fixed every year by the Finance Act (आर्थिक ऐन), while the main law is the Income Tax Act, 2058. Always check the slab for the year asked in the question.
Analysis Points (for Subjective Answers)
- Current expenditure takes about 60% of the budget, while capital expenditure is only about 20%. This shows heavy pressure from salaries, pensions and grants.
- Nepal has a long-standing problem of low capital spending. Karnali Province, for example, spent only 55.74% of its capital budget in FY 2082/83, with half of it spent in the final month.
- Loans of about Rs 657 billion will increase public debt and future interest payments.
Practice MCQs
- What is the size of Nepal’s federal budget for FY 2083/84?
a) Rs 1.86 trillion b) Rs 1.75 trillion c) Rs 2.124 trillion d) Rs 2.5 trillion
Answer: c) Rs 2.124 trillion - Who presented the budget for FY 2083/84?
a) Bishnu Paudel b) Prakash Sharan Mahat c) Swarnim Wagle d) Barshaman Pun
Answer: c) Swarnim Wagle - Which article of the Constitution of Nepal requires the budget on Jestha 15?
a) Article 114 b) Article 119 c) Article 59 d) Article 76
Answer: b) Article 119 - What share of the budget 2083/84 is capital expenditure?
a) 15.2% b) 20.3% c) 29.8% d) 59.8%
Answer: b) 20.3% - What economic growth target does FY 2083/84 aim for?
a) 5% b) 6% c) 7% d) 8%
Answer: c) 7%
Related Notes
- Economics and Planning notes
- Monetary Policy 2083/84
- Cabinet decisions, September 2026
- Nepal-India power trade 2026
- All Current Affairs posts
Sources: The Himalayan Times: Rs 2.12 trillion budget; Ratopati: budget of Rs 2,124.34 billion; Global IME Bank: budget highlights; Ministry of Finance (official). Some sources give slightly different figures for financial management (Rs 422.24–422.64 billion). Last updated: 20 October 2026.
Why this matters for Lok Sewa
- Budget size, shares and financing are asked from Kharidar to Section Officer. See Budget estimate, approval and LMBIS.
- Remember the stable rule: the budget is presented on Jestha 15 under Article 119.
Quick practice questions
- What is the total size of the 2083/84 budget? Answer: Rs 2,124.34 billion (about Rs 2.12 trillion).
- Who presented it? Answer: Finance Minister Dr. Swarnim Wagle.
- What share is capital expenditure? Answer: About 20.3% (Rs 431.1 billion).