# Fiscal Policy in Nepal: A 2026 Outlook
Nepal's fiscal trajectory depends on three **interlocking** variables:
revenue mobilization, capital expenditure, and debt servicing.
## Revenue Trends
- VAT collection grew 12% YoY
- Income tax remained flat
- Customs duties declined 3%
> The single biggest risk is *execution capacity*, not fiscal space.
### A simple model
$$ \text{Deficit}_t = G_t - T_t = \alpha Y_t + \varepsilon_t $$
| Year | Revenue (Rs bn) | Expenditure | Deficit |
|------|----------------:|------------:|--------:|
| 2023 | 1,023 | 1,278 | 255 |
| 2024 | 1,154 | 1,401 | 247 |
See [the full report](https://example.com/report) for details.
```python
def deficit(revenue, spending):
return spending - revenue
**Why this is best:** no HTML wrapper to remember, no escaping, works with math (`$$...$$`), code fences, tables, blockquotes — everything. The marker comment is invisible in the rendered post.
---
### Method 2 — Section Markdown (for mixed HTML + Markdown posts)
Use when you want **some parts** in Markdown and other parts in raw HTML (e.g. a custom embed). Wrap the Markdown section in `
`:
```html
Introduction
This part is plain HTML — maybe a hand-styled callout.
### Key Findings
1. **Revenue growth** outpaced expectations by 8%.
2. **Capital spending** lagged due to procurement delays.
3. **Debt-to-GDP** stabilized at 42%.
The elasticity of revenue with respect to GDP:
$$ \varepsilon = \frac{\Delta T / T}{\Delta Y / Y} $$
Back to plain HTML for the conclusion.
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Arjun Bhujel
Economist and civil servant. Researching fiscal policy, development economics, and governance reform. All views are personal.