KATHMANDU, June 8: The government has announced an investment of nearly Rs 4 billion for science, technology and innovation through the budget for fiscal year 2026/27, giving special priority to promoting startups and entrepreneurship. At a time when investment in innovation and research has remained relatively low in previous years, this year’s budget has introduced a clear policy aimed at encouraging young entrepreneurs, scientists and businesses driven by innovative ideas.
Presenting the budget in Parliament, Finance Minister Dr Swarnim Wagle said Rs 4 billion has been allocated for science, technology and innovation programmes. In addition, Rs 500 million has been earmarked to establish the Nepal Enterprise Facility, aimed at bringing startups as well as small and medium enterprises under a single umbrella.
The government’s move is being viewed as an important step toward building an innovation-driven economy. In recent years, young entrepreneurs working in information technology, agricultural technology, artificial intelligence, green energy and digital services have repeatedly complained of inadequate financial and institutional support. The budget appears to set a goal of systematically developing Nepal’s startup ecosystem for the first time.
The proposed Nepal Enterprise Facility is expected to function as a platform connecting startups and small and medium enterprises to the national enterprise ecosystem. Through the facility, the government plans to strengthen policy support, improve access to innovative financial instruments, create investment opportunities, provide incubation services and foster collaboration among entrepreneurs.
According to Finance Minister Wagle, the platform will also integrate domestic entrepreneurship promotion initiatives. It is expected to provide aspiring young entrepreneurs with business counselling, training, investment access and technical support needed to launch new ventures.
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The budget has also announced startup support for 1,000 young entrepreneurs seeking to establish businesses in agriculture and livestock-related sectors. The programme is part of the government’s plan to transform agriculture from a traditional occupation into a modern business. Officials believe it will contribute to greater use of technology in agriculture, value-chain development and job creation.
To create an environment where young scientists can pursue research within Nepal, the government will implement programmes focused on enhancing research, innovation and entrepreneurship. At a time when limited opportunities and low investment in research have contributed to the outflow of skilled human resources, the government’s decision to allocate direct funding for research is being viewed as a positive signal.
Experts in science and technology note that Nepal’s investment in research and development (R&D) remains among the lowest in South Asia. They argue that a lack of coordination among universities, research institutions and the private sector has prevented many promising innovations from achieving commercial success. According to them, the new budget seeks to bridge that gap.
The government has also announced plans to establish an observatory centre at Everest Base Camp to promote astronomical tourism. The initiative aims to combine scientific research with tourism by utilizing the unique natural characteristics of the Himalayan region. It is expected to help position Nepal as a destination for both adventure and scientific tourism.
Information technology and artificial intelligence have also received high priority in the budget. The government has adopted a policy to develop the coming decade as Nepal’s “Information Technology Decade,” promoting the expansion of digital infrastructure, the construction of data centres and the development of AI-based services.
Economists say increasing investment in innovation alongside productive sectors is essential for long-term economic growth. They argue that investments based on knowledge, research and technology generate greater value than budgets focused solely on traditional infrastructure development, making the government’s allocation to the sector a welcome step.
However, analysts caution that implementation will remain the biggest challenge, as many programmes announced in previous years have suffered from weak execution. They say effective mobilization of the budget allocated for startups and innovation could significantly contribute to entrepreneurship development, job creation and the growth of indigenous technology.
The budget for the upcoming fiscal year signals an effort to make innovation, research and entrepreneurship new pillars of economic development. The government’s plan to invest nearly Rs 4 billion in science, technology and startups has added momentum to discussions on building a knowledge-based economy in Nepal. If implemented effectively, the announced programmes are expected to create opportunities for young talent within the country and lay the foundation for long-term economic transformation.
