Kathmandu, May 30 -- The new government under the Balendra Shah administration on Friday unveiled an ambitious Rs2.12 trillion annual financial plan for the fiscal year 2026-27, beginning mid-July, prioritising infrastructure expansion, structural reforms and tax overhauls despite mounting resource constraints and growing concerns over debt sustainability.

The budget has cheered the middle class through sweeping income tax relief and reform-oriented policies, but critics say it has failed to adequately address the concerns of low-income groups struggling with high inflation triggered by the West Asia crisis.

The bloated budget is 8.15 percent bigger than the ongoing fiscal year's original allocation and 25.2 percent larger than the revi...