Nepal, June 4 -- By announcing a national budget of Rs2.124 trillion for FY 2026-27, Finance Minister Sarnim Wagle signalled what could be a major change in how Nepal thinks about its economy. Moving away from state-led development frameworks, the budget recognises the private sector as the primary engine of growth. It aims to restore investor confidence, simplify taxes, boost IT exports, liberalise capital markets and ease corporate investments.

However, while the budget aggressively attempts to shift Nepal towards a market economy, it remains timid regarding structural reforms within the state itself. It demands that businesses innovate and take risks, yet offers no solution for deep-rooted administrative inefficiencies. This core cont...