The House of Representatives on Tuesday, June 24, passed the Rs 1.96 trillion national budget for the fiscal year 2025/26, which begins on July 17.

Deputy Prime Minister and Finance Minister Bishnu Paudel had unveiled the annual financial plan during a joint session of Parliament on May 29.

The Lower House endorsed the Appropriation Bill by a majority vote after a clause-by-clause review. Although 22 lawmakers proposed cuts to various ministerial allocations, all motions were rejected.

The Rastriya Swatantra Party (RSP) and Rastriya Prajatantra Party (RPP), the fourth and fifth largest parties in the House respectively, boycotted the entire budget discussion and did not attend the vote.

Both parties are demanding the Home Minister’s resignation over a visit visa scandal. They have called for either a parliamentary investigation or a high-level judicial commission.

In response, the government formed a high-level probe committee on June 23, chaired by former Chief Secretary Shanker Das Bairagi. However, RSP and RPP rejected the committee, questioning the neutrality of some members.

RSP lawmaker Dr Swarnim Wagle stated the Bairagi-led committee was “unacceptable.” Both parties have been boycotting parliamentary proceedings since May 26.

The approved budget is 5.6% larger than the current fiscal year’s allocation and 18.2% higher than the revised mid-year estimate.

Of the total outlay, Rs 1.18 trillion (60.1%) is allocated for recurrent spending, Rs 407.89 billion (20.8%) for capital expenditure, and Rs 375.24 billion (19.1%) for financial management.

To fund the budget, the government aims to raise Rs 1.315 trillion in revenue. It expects Rs 53.45 billion in foreign grants and plans to borrow Rs 233.66 billion externally and Rs 362 billion from domestic sources.