Nepal's Budget Revised Mid-Year to Rs 1.688 Trillion After Gen Z Unrest
- Event Title
- Nepal's Budget Revised Mid-Year to Rs 1.688 Trillion After Gen Z Unrest
- Details
Overview
Following the political transitions of late 2025, the interim government of Nepal led by Sushila Karki revised the national budget for FY 2025/26 downward. In February 2026, the budget was reduced to Rs 1.688 trillion, down by
$14.06\%$from the original allocation of Rs 1.964 trillion.Key Details
- Budget Cut: A
$14.06\%$reduction was applied across both capital and recurrent expenditures to promote fiscal austerity. - Drivers: The reduction was driven by political transition, slower revenue collection, and economic disruptions.
- Prioritization: The revised budget focused strictly on funding essential public services and preparatory expenses for the upcoming March 2026 elections.
- Budget Cut: A
- Date
- 2026-02-11
- Category
- Economy
- CMAT Significance
- High CMAT priority — revised budget amount (Rs 1.688 trillion), percentage cut (`$14.06\%$`), and reason (Gen Z unrest/austerity) are likely exam questions.