Experts Recommend 20% Cut in Nepal's Recurrent Spending to Boost Growth

As Nepal prepares to unveil its fiscal year 2025/26 budget, experts highlight recurring challenges such as poor capital spending and ballooning recurrent expenditures, which hinder development and economic growth. More than 60% of the budget currently goes to salaries and administrative costs, leaving only a small portion for capital investment, resulting in unfinished projects and sluggish progress. To maintain fiscal discipline and promote growth, recommendations include reducing recurrent expenses by 20% and curbing unnecessary government spending, such as foreign trips and political appointments. Strong political will and improved administrative efficiency are seen as essential for successful budget implementation and addressing these systemic issues.