Nepal, Feb. 11 -- The government has downsized the annual budget for the current fiscal year (FY 2025/26) by 14.06 percent, cutting Rs 276 billion from the initially announced outlay of Rs 1.964 trillion.

Unveiling the mid-term budget review on Tuesday, the government cited slow capital expenditure, weak revenue collection, and low foreign loan realization as reasons for the revision. The revised budget now stands at Rs 1.688 trillion.

Budget downsizing during mid-term reviews has become a recurring trend. Last year, the government reduced the budget by Rs 168 billion (9.01 percent). Similarly, the budget for FY 2023/24 was slashed by 12.62 percent to Rs 1.530 trillion.

Speaking at a program organized by the Ministry of Finance (MoF), ...