Finance Minister Swarnim Wagle on Friday unveiled a reform-heavy budget for the fiscal year 2026-27 during a joint session of Parliament, headlined by the introduction of a new hedge fund starting next fiscal year.

To stimulate foreign capital inflows, the government announced crucial legal amendments to investment approvals, profit repatriation, and capital gains tax, effectively paving the way for Non-Resident Nepalis (NRNs) to enter the secondary securities market.

In a major bid to clear judicial backlogs and improve the business climate, the budget introduced a tax dispute settlement scheme that allows pending court cases to be withdrawn if the disputed tax amount is paid within a set timeframe, along with a 1 percent surcharge.

Minister Wagle also announced the creation of a dedicated commercial tribunal for fast-tracking business disputes, alongside updates to the Mediation Act and the drafting of a new debt recovery law. The infrastructure sector received attention as well, with the government promising to stabilise public procurement by securing the tenure of project chiefs and addressing how rising construction material costs impact contractors.

On the fiscal front, the budget delivers substantial relief to both consumers and domestic industries by completely scrapping excise duties on 360 types of goods. Furthermore, customs duties on 273 industrial raw materials have been reduced, ensuring a progressive tariff structure where raw inputs remain at least one level cheaper than finished imports.

Minister Wagle confirmed that the maximum income tax bracket will be capped at 29 percent for the upcoming fiscal year.