Finance Minister Swarnim Wagle on Friday announced a 21 percent increase in salaries for government employees while unveiling a broad package of welfare, infrastructure, sports and healthcare measures in the budget for fiscal year 2026-27.

The finance minister said salaries had not been increased for the past four years, while inflation had risen by 17.3 percent during the same period.

The government also announced that lottery schemes would be introduced under all remittance inflow programmes.

In the health sector, the government allocated Rs15 billion for the health insurance programme, which had faced disruption in both public and private hospitals due to financial difficulties.

The budget also announced air ambulance services in remote areas of Karnali Province. Night duty allowances for nursing staff have been doubled, while allowances for female community health volunteers have been increased by 50 percent.

The government allocated Rs2.27 billion to the Ministry of Women, Children, Gender and Sexual Minorities and Social Security. An additional Rs1 billion has been earmarked for nutrition support for Dalit children below the age of five.

Wagle also announced free lifetime healthcare for athletes winning international medals to ensure a dignified life after retirement.

In the sports sector, the government said students with special interest and talent in sports would be identified from the basic school level and provided training and necessary facilities.

The government plans to construct modern cricket stadiums in eight major cities within five years. Indoor multipurpose stadiums with a minimum capacity of 2,000 spectators will be built within three years in Biratnagar, Lahan, Kathmandu, Pokhara, Butwal, Surkhet and Fapla in Dhangadhi.

The budget also announced that at least 10 football stadiums with capacities of 8,000 spectators would be upgraded with floodlights within the next three years by linking sports infrastructure with youth development and local economies.

The government further said entrepreneurship development programmes would be launched for people injured during the Gen-Z movement. Wagle said martyrs of the movement would be honoured and their families had already been guaranteed dignified financial assistance. The injured will receive free treatment, monthly allowances based on condition and entrepreneurship support.

In the heritage sector, the government announced efforts to include Tilaurakot in Kapilvastu, Janakpur in Dhanusha and Gokarneshwar in Kathmandu in the UNESCO World Heritage list. A special project will also be launched to conserve at least two dozen monasteries over 200 years old in Mustang, Manang and other areas.

The government allocated Rs70 billion to complete under-construction transmission lines and substations.

In road infrastructure, the Khutiya-Dipayal road section has been given special priority, with the government announcing plans to upgrade the Khutiya-Dipayal fast track connecting Kailali and Doti.

The budget also allocated Rs6.25 billion for the Karnali, Kaligandaki and Koshi corridors. Under the plan, 31 kilometres of blacktopping and gravel work will be completed on the Karnali Corridor, 21 kilometres of blacktopping on the Kaligandaki Corridor and 15 kilometres on the northern section of the Koshi Corridor.