The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.
Nepal’s fiscal position improved sharply in 2025/26, recording a Rs. 31 billion surplus as revenues and grants outperformed expenditures. Experts view this as a step toward fiscal stability, but warn sustainability will depend on efficient spending and prudent debt management.
Local governments recorded a surplus of Rs. 611 million in mid-August 2025/26, reflecting improved fiscal management, revenue mobilization, and coordination under federalism.
Nepal borrowed Rs. 5.1 billion in foreign loans in the first month of 2025/26. The funds supported capital projects and fiscal stability but highlight the need for prudent debt management and efficient use of external financing.
Nepal’s government recorded a strong cash surplus of Rs. 226B in the treasury by mid-August 2025, driven by higher revenue and low spending. While this signals fiscal discipline, experts caution that under-utilized funds must be directed toward infrastructure and growth-oriented projects.
Nepal’s total government expenditure reached Rs. 44B in mid-August 2025/26 — with recurrent spending still dominating and capital investment remaining low, raising concerns about fiscal efficiency and development momentum.
Nepal raised Rs. 40B in domestic borrowings in the first month of 2025/26, entirely via development bonds, reflecting fiscal pressures but also raising concerns about debt sustainability.
Provinces posted an Rs. 8.5B surplus due to high transfers and low spending, but this reveals capacity gaps rather than efficiency, raising concerns about the effectiveness of Nepal’s federal model.
Nepal mobilized Rs. 75.1B in revenue and grants in a single month, outpacing expenditure, but questions remain whether the government can sustain fiscal discipline in the long run.
Nepal’s government posted a budget surplus of Rs. 31.1B in mid-August 2025/26, driven by strong revenues and restrained spending — a rare but positive fiscal shift.
