Nepal, June 2 -- Finance Minister Swarnim Wagle presented the Rs 2,124.34 billion budget for fiscal year 2026-27 aiming 7 percent of growth in the next FY against a difficult backdrop, growth that the government's own figures put well at 3.85 percent for the current fiscal year, inflation imported through the West Asia crisis, weak private-sector confidence, a decade of chronic under-spending of the capital budget, and a debt stock that has nearly doubled in six years. This fiscal policy clearly identifies the economy's structural problems and suggests a cleaner tax system than before.

First, it's important to acknowledge the positive aspects of the budget. The overhaul of personal income tax is the smartest revenue reform in a generatio...