Kathmandu, May 31 -- The country's banking system is awash with cash. More than Rs1.4 trillion that can potentially be lent to businesses and households remains parked in the financial institutions, even as policymakers search for ways to revive investment and economic activity.

The abundance of lendable funds comes at a time when remittance inflows continue to break records. By mid-April, foreign exchange reserves had climbed to an unprecedented Rs3.494 trillion, while both the current account and balance of payments remained comfortably in surplus.

Amid these robust external macro-economic indicators, the budget for the fiscal year 2026-27 presented by Finance Minister Swarnim Wagle on Friday has drawn mixed reactions from stakeholder...