#NepalEconomy #GovernmentFinan
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By Sandeep Chaudhary

Cash Balance of Government Hits Rs. 226B: Stronger Fiscal Cushion in 2025/26

Cash Balance of Government Hits Rs. 226B: Stronger Fiscal Cushion in 2025/26

Nepal’s cash balance of the general government surged to Rs. 226.6 billion by mid-August 2025/26, providing a stronger fiscal cushion at a time of rising economic uncertainty. The latest data from the Nepal Rastra Bank (NRB)shows that the balance improved significantly compared to Rs. 192.5 billion in the previous month and Rs. 130.7 billion a year earlier, reflecting robust revenue mobilization and controlled expenditure.

The improvement comes as government revenues, including federal and provincial transfers, have outpaced total expenditure. Meanwhile, provincial governments also posted surpluses, and internal loan mobilization through treasury bills and development bonds strengthened liquidity.

Experts note that while the cash balance indicates the government’s ability to finance obligations without immediate borrowing, sustained expenditure on capital projects, debt servicing, and rising recurrent expenses could erode this cushion. Nonetheless, the record-high cash balance is viewed as a short-term sign of fiscal resilience.

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