Rs 1.890 trillion Budget Approved as Revenue Investigation Department Faces Closure
The Nepal government has fixed a budget ceiling of Rs 1.890 trillion for the fiscal year 2026/27 while moving ahead with a series of fiscal and administrative reforms, including the abolition of the Department of Revenue Investigation. Finance Secretary Ghanshyam Upadhyay informed the House of Representatives’ Finance Committee that the budget ceiling was determined by the National Resource Estimation Committee based on projected revenue generation and expenditure requirements. According to Upadhyay, ministries have already been assigned their budget limits and instructed to upload their plans into the government’s budget system.
He said the Ministry of Finance is currently reviewing spending priorities with different ministries, with a focus on completing ongoing projects and reducing unnecessary expenditures. Upadhyay stated that capital expenditure in the current fiscal year has so far reached 26 percent, while revenue collection stands at 60 percent of the annual target, amounting to approximately Rs 886 billion. As part of broader administrative reforms, the Finance Secretary confirmed that the Department of Revenue Investigation will be abolished due to overlapping responsibilities with other agencies. Its functions will be redistributed among relevant government departments.
He further said that the government has already removed 39 administrative structures and abolished more than 300 positions as part of efforts to streamline governance and reduce inefficiencies. Additionally, the government is in the process of repealing 15 outdated laws, aimed at modernizing administrative and fiscal systems.
